Advantages of RAMM Accounts for Novice Traders

Forex market – is a place of great opportunity. And it’s not just about the fact that you can trade dozens of instruments 24/5, but also about alternative sources of income (Forex Trading). For example, some traders use automatic trading forex robotsThe most important thing is that I have a good idea to use the RAMM service. Just about such services and now we are going to talk about, to be exact about RAMM. So, the RAMM copy-trading service is a modern investment service that allows you to earn income in the financial markets, following the trading strategies of experienced traders, for a fee (forex trading strategies). Using such an account, the investor retains control over his money, sets acceptable norms of losses (Forex without Investment and Risk).

How a RAMM account works

Through the service, the signal is transmitted from the source (the managing trader) to the recipient, i.e. the investor. The technology transmits data about the opening or closing of a trade by the trader. Everything happens automatically, and the trader does not have to open trades manually. Thus, the investor simply becomes an observer who does not interfere in the trading process unnecessarily. This approach eliminates the investor’s emotional involvement and allows the investor to avoid worrying about the relative right or wrong entry into trades. In addition, the service of copying trades works regardless of whether the user’s terminal is connected to the network or not.

Now a few words about the role of participants in the RAMM service. So, we have an investor and a trader. The role of the investor is to invest in order to copy trades, to stop the investment if he is not satisfied with the results, to close the account, and to set loss and profit levels. There is the role of the trader, who creates his strategy, then with it gets into the RAMM rating, and then trades according to the strategy (Best Forex Strategies).

It should be noted that the service of copy-trading RAMM may not be suitable for scalping strategies, because even a small delay in the transmission of the signal to open the deal to the investor, which is in RAMM, may affect its yield curve and not coincide with the curve of trader (simple forex strategies). That is why the RAMM rating chart the return on strategies is displayed on the basis of investments. So that potential investors can count on exactly the returns they see on the chart.

What is important to know about RAMM accounts?

If in normal trading a trader needs to take into account dozens of parameters (exchange rates, news background, technical features of a particular instrument, etc.), here the number of parameters to choose is an order of magnitude smaller. So, what an investor should pay attention to when choosing a strategy:

• Yield;
• Age of strategy;
• The amount of investment;
• Number of investors;
• The amount of the trader’s remuneration.

Before starting to copy the selected strategy, the investor sets the parameters of risk levels: “Multiplier” (copy ratio), “Target” (Take profit) and “Protection” (Stop loss). The “Profitability” parameter will determine how much the investor will earn. It is clear that the higher it is, the higher is the return on investment. “Age of the strategy” is also important. The longer a strategy has been around, the more reliable it is, of course, provided it is profitable. “Number of investors” is also worth considering, as this is a good clue to the most popular and profitable strategy. “Amount of remuneration” is how much the investor will give to the trader from his profits. Here you should not save money and put it very small.

No one guarantees 100% service profitability, and this should also be taken into account. Therefore, one should be cautious and set Stop Loss (“Protection”) and Take Profit (“Target”), as well as apply the Money Management rules. It is clear that the deposit amounts of the managing trader and of the investor may vary thousands of times: Some may have $100,000, while others $100. Previously, the investor himself would have to calculate the difference in volume and set it. The modern RAMM system automatically makes the calculation, and the investor only has to fund the account. I.e. if the trader has, for example, 1000$, and the investor has only 100$, the system will copy transactions with a volume 10 times less.

The difference between PAMM and RAMM

To start defining both services:

• PAMM – is a special software designed to allow the trustee trader to combine investment funds in one account and to distribute the resulting profits among investors in accordance with their investments.
• RAMM is an investment service that allows you to earn income in the financial markets, following the strategies of experienced traders. The service gives an opportunity to earn on the trades of professional traders, and for traders – on commissions for the use of strategies.

Investing through both PAMMs and RAMMs has its own characteristics, and neither one guarantees 100% a profit. Nevertheless, RAMM accounts have some features. For example, trading is done from a personal account, not through the account of the managing trader. Thus, the control of funds remains in the hands of the investor himself, and he can intervene if he sees fit. Other advantages of RAMM-accounts:

• Unlike trading through PAMM, the service of copy-trading RAMM does not imply obtaining a license, which greatly expands the choice of manager;
• The RAMM system is formed according to transparent and clear algorithms;
• The system settings have flexible options for copying orders;
• The investor can manually disable transaction copying;
• Synchronicity of copying strategies with fully identical execution prices of both original and copied positions;
• The accuracy of copying strategies does not depend on the amount of investment;
• The commission is paid to the trader only if his subscriber receives a profit from copied trades.

Bottom line

So, the RAMM copy-trading service is a modern and popular tool for making profits. This system allows you to earn by using the accumulated experience and knowledge of traders who already have achievements in trading. Remember that before you connect to a RAMM account, you need to analyze the account of your chosen trader (forex analytics). It is this step that will be the path to successful copy-trading.