Fund Manager
Fund Manager opens a Manager PAMM account which also specifies the Manager's Proposal.
Fund Manager opens a Manager PAMM account which also specifies the Manager's Proposal.
The Manager's Proposal includes the following factors:
Minimum Capital: The minimum amount that the Manager accepts to manage on a per Investor Basis. Please note that the floor set by HotForex is at least $500 per Investor Account.
Success Fee: The percentage from the profits payable to the Fund Manager on a Monthly basis. This is based on a High Watermark* basis.
* High Watermark: The highest peak in value that an investment fund/account has reached. The high-water mark ensures that the manager does not get paid large sums for poor performance. So if the manager loses money over a period, he or she must get the fund above the high watermark before receiving a performance bonus. For example, say after reaching its peak a fund loses $100,000 in year one, and then makes $250,000 in year two. The manager therefore not only reached the high-water mark but exceeded it by $150,000 ($250,000 - $100,000), which is the amount on which the manager gets paid the bonus.
Trading Style: A description of the Manager's Trading Style
Minimum Capital: The minimum amount that the Manager accepts to manage on a per Investor Basis. Please note that the floor set by HotForex is at least $500 per Investor Account.
Success Fee: The percentage from the profits payable to the Fund Manager on a Monthly basis. This is based on a High Watermark* basis.
* High Watermark: The highest peak in value that an investment fund/account has reached. The high-water mark ensures that the manager does not get paid large sums for poor performance. So if the manager loses money over a period, he or she must get the fund above the high watermark before receiving a performance bonus. For example, say after reaching its peak a fund loses $100,000 in year one, and then makes $250,000 in year two. The manager therefore not only reached the high-water mark but exceeded it by $150,000 ($250,000 - $100,000), which is the amount on which the manager gets paid the bonus.
Trading Style: A description of the Manager's Trading Style
The Fund Manager's Profile will now be listed on the HotForex PAMM Website. Investors will be able to select to invest with a Manager via the listed profile.
NOTE: A manager may elect not to have his/her fund listed.
At the end of every month, the Success Fee will be deducted from the Investor's Account and paid to the Manager. In the case that the account is not profitable no Success Fees will be deducted.
Example:
Investor deposits $1000 in a PAMM Manager account on the first day of Month 1. The success fee is 10% on profits on a monthly basis
Investor deposits $1000 in a PAMM Manager account on the first day of Month 1. The success fee is 10% on profits on a monthly basis
Month 1: Manager generates $100 profit so at the end of the month is entitled to $10.
Month 2: Manager looses $200 so no Success fee is paid by Investor.
Month 3: Manager makes $200 in profit but is not entitled of any Success Fee.
This is because the Success Fee is based on a High Watermark Regime. This means that the manager took the account to its highest level at $1,100. So only when the ending balance of the account goes over that level will the manager gets paid the success fee.
Investors simply select a Manager's Profile and select 'Join Now'. We strongly encourage Investors to perform their due diligence before Joining a Manager. HotForex provides a multitude of statistics on every Manager's Performance with the aim of providing Investors as much information as possible so they can make an intelligent choice.
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