What are RAMM accounts?
The RoboForex RAMM (Risk Allocation Management Model) account system is a type of Forex trading account management service that is becoming a rapidly growing form of investment in the foreign exchange market and is based on efficient risk management and the proportional allocation of benefits. It is based on the concept of PAMM-managed accounts, offering the same profit possibilities with the advantage of offering greater risk control and greater control of funds and profits. This service is a development that combines the advantages of signal services with PAMM accounts.
The RAMM account service allows investors interested in the markets to invest their money in the strategies of experienced traders and obtain profits from the financial markets without having to trade and analyze the markets on their own. Therefore, it is ideal for investors who have no knowledge or the time necessary to operate in the Forex and other markets successfully.
When investing in a RAMM account, the investor’s money remains in his personal account and under his control. The RAMM platform automatically opens the same trades performed by the trader whose strategy is copied and executes these transactions using the capital of the investor. As for traders, the platform allows experienced traders to trade as they normally do and share their trading strategies with investors to obtain performance-based commissions, which investors pay depending on the benefits they earn from copied trades.
More information on this broker and its service through the following link: RoboForex Broker Review
Risk control in RAMM accounts
During the development of the RAMM system, the creators focused on limiting risks to investors and ensuring an adequate copying process of trading strategies. RAMM accounts combine the advantages of other investment services and do not have their limitations.
It is known by many traders that most losses in the markets are caused by faulty trading psychology and by not following the trading strategy. For professional traders and investment companies, risk management is a basic component of the trading process. RAMM is the only trading platform with a built-in risk management system, which does not allow a strategy to lose an amount greater than one previously defined, for a week.
An additional benefit of the RAMM system is its unique trading model that optimizes the performance of a strategy according to the determined risk level. Thanks to this, some rather unstable strategies may even be profitable.
The RAMM system is based on a mathematical model that optimizes the investment return at the given risk level. The investor chooses the percentage of the balance of his investment that he is willing to lose for a week in the worst possible scenario (maximum acceptable loss). The trader can not lose more due to restrictions imposed on his trades:
- Weekly limits that do not allow traders more transactions in case of losing the assigned weekly limit.
- Mandatory stop loss for each trade that cannot be moved in the sense of increased risk (to a greater distance from the entry price) after the position is opened.
All positions in RAMM accounts are automatically closed on Fridays to protect the investor from volatility and gaps that may occur during the market opening.
In this article, we are going to talk about the RoboForex RAMM account service.
What does the RoboForex RAMM account service offer?
- A built-in risk management system: The risk control system incorporated into the RAMM platform allows investors to establish a “Weekly Risk Level” and therefore protect their investments against possible losses above the pre-established limit.
- Automatic calculation of the lot size for opening positions: The RAMM account system automatically calculates the lot size for opening new positions by simply indicating the opening levels, setting potential losses and benefits, and indicating a percentage for the weekly loss limit, which will be applied in case a fixed loss limit is used.
- Optimization of benefits: The system automatically identifies the optimal weekly loss limit for each strategy.
Investment and trading in RoboForex RAMM accounts
Investors in RAMM accounts
For investors, the RAMM account service offers the following:
- Strategies are copied with the same order execution prices in all copied transactions.
- The investor can stop his investment at any time and withdraw his money instantly.
- A unique strategy monitoring system to evaluate the trading style and profitability of the strategy.
-Minimum investment amount: USD 10
-Minimum investment period: 1 week.
Traders (trading signals providers) in RAMM accounts
Traders interested in obtaining additional profits with their trades can create trading strategies with their RAMM account (1 strategy = 1 PAMM account), which can be copied by investors.
- Signal providers can trade both manually and automatically (through automated trading systems).
- The trader can receive up to 50% of the benefits obtained by investors.
- The system is responsible for controlling the risk level of the strategy, which prevents the trader from becoming distracted due to this task and allows him to focus on the trading strategy and his performance.
-Minimum amount of funds to create a strategy: USD 50
-Minimum increase in order volume (lots): 0.000001
Through a RAMM account, the RoboForex customer can earn money as a Trader and Investor, so that he can get twice the benefits.
Advantages of the RAMM system for investors
The main advantages offered by RAMM accounts to investors are the following:
- The strategies are copied completely: In the RAMM system, the strategies are copied completely in the investor’s account, in full agreement with the ideas of the trader, regardless of the total trading capital of the investor. In this way, you get the same results as the trader.
- Execution prices are the same for the investor and the trader: In the RAMM accounts the trading execution for traders and the investors who copy them occurs simultaneously and at the same prices, in such a way that there are no delays. The result for the investor is always the same as for the trader that is copied.
- Investors can cancel their investment at any time and withdraw their money immediately: Investors in RAMM accounts can finish their investment at any time and withdraw their money immediately, unlike traditional PAMM accounts.
- Traders are limited to strict restrictions: In the RAMM system, there are strict restrictions that are integrated into the strategies of the traders so that they do not allow them to lose all their investment in a short period of time. At the same time, these restrictions do not adversely affect the performance of the trader.
- The investor pays commissions only when the trader obtains benefits: Traders in the RAMM system receive commissions based on performance. Therefore, the investor does not have to pay for the time spent subscribing to a strategy or the volume of trades carried out. You only pay when you earn money.
- The Investor can choose the risk level in his investments: In the RAMM system, the investor defines the risk level with which he wants to invest in a strategy. You can always choose the risk: benefit ratio with which you feel most comfortable. Regardless of the risk level chosen, the strategy will always be copied with a valid relationship between volumes of different trades.
- Risk management is incorporated into the strategies: In the RAMM accounts the system has risk management tools that are incorporated as parameters in all strategies, so that risk control is applied automatically. This is done based on the “Weekly Risk Level” established by the investor, so that he does not have to manage the risk of strategies that he does not really know or have developed.
- The investor pays a percentage of the profits: The investor pays 25% of the profits obtained to the trader whose strategy he is copying. This way you only pay when you earn money. If the trader loses a portion of an investor’s capital, he will not receive commissions until he recovers that loss again.
List of strategies (PAMM accounts) of the RoboForex RAMM system
The following image shows the list of trading strategies (PAMM accounts) in which the clients of RoboForex can invest in the RAMM system:
This list shows the strategies ordered according to their profitability, together with the most important statistics of each strategy, including the weekly average return, the total return, the risk level, the total time the strategy has been active, a return graph, the amount of current investors (follower) and the total amount of money invested so far.
Through the interface, the investor can access a detailed analysis of each strategy, which includes its most relevant performance statistics, such as those mentioned above, but with a much more precise level of detail. For example, performance data is offered for each strategy for each risk level used by investors (5% -50%).
Later we will talk more about the statistical analysis tools offered by the RAMM accounts of this broker.
How to open a RoboForex RAMM account?
The process to open a RAMM account is simple and is described below:
- Open an account with the RoboForex broker on the company website (it takes a few minutes).
- Enter the user panel (myRoboForex) with the access data.
- Click on “Open RAMM Account“.
- Enter the required information.
- Once the account is activated, the client must deposit the necessary funds either as an investor or as a trader.
You can obtain more information about the RoboForex RAMM account service and open a RAMM account on the company’s website through the following link: