With this method, deposits trigger no reallocation. On withdrawals, open positions on the PAMM master are autocorrected — partially closed in proportion to the withdrawn amount — to preserve the master account’s leverage (margin level).
Use with caution
Because positions are not rebalanced on deposit, (1) the performance of the master and its investors can differ significantly, and (2) the master’s leverage rises relative to investors, so an investor can reach the stop-out level earlier than the trader. Use this method only if you have a clear plan to manage these effects.
Worked example
The setup and Steps 1–3 are identical to the reallocation example (EUR/USD, 1 lot = 100,000). Scroll the table sideways to follow all three accounts. Watch the Open positions column: with no reallocation on deposit, Investment #1 keeps its original 1.1555 entry the whole time, and Investment #2 only ever receives the later GBP/USD trade — so the two investors end up with different portfolios.
Das Beispiel baut sich Schritt für Schritt auf. In jeder Tabelle ist der neueste Schritt hervorgehoben und geänderte Zellen erscheinen in der Akzentfarbe; frühere Schritte sind abgeschwächt. Scrollen Sie eine Tabelle seitwärts, um alle drei Konten zu sehen.
Both Investment #1 and the master balance rise by 1,000 USD. No position is open yet.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
The position is copied to Investment #1, the only funded account.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
The master and Investment #1 gain the same floating profit on their 1 lot.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
The master balance rises by 550, but no position is reallocated — this method takes no action on deposits, so Investment #2 holds nothing yet. The master keeps its lot, so its equity already reflects 450 of floating profit.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD — no reallocation | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
Master equity = 1,550 + 1 lot × (1.1600 − 1.1555) × 100,000 = 2,000Only the master and Investment #1 hold the position, so only their equities move.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD — no reallocation | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
| Step 5 · EUR/USD rises to 1.1700 | 1,550 | 3,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 2,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
Master equity = 1,550 + 1 lot × (1.1700 − 1.1555) × 100,000 = 3,000
Equity #1 = 1,000 + 1 lot × (1.1700 − 1.1555) × 100,000 = 2,450No autocorrection occurs because Investment #2 has no open position. Both the master and Investment #2 balances drop by 250.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD — no reallocation | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
| Step 5 · EUR/USD rises to 1.1700 | 1,550 | 3,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 2,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
| Step 6 · Investor #2 withdraws 250 USD — no autocorrection | 1,300 | 2,750 | 1 lot EUR/USD @1.1555 | — | 1,000 | 2,450 | 1 lot EUR/USD @1.1555 | — | 300 | 300 | — | — |
Investment #1 holds an open position, so autocorrection partially closes it in proportion to the withdrawn amount over equity. The realized profit is credited, then the 1,000 withdrawal reduces balances. The master mirrors the same partial close, leaving 0.6 lots on each.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD — no reallocation | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
| Step 5 · EUR/USD rises to 1.1700 | 1,550 | 3,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 2,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
| Step 6 · Investor #2 withdraws 250 USD — no autocorrection | 1,300 | 2,750 | 1 lot EUR/USD @1.1555 | — | 1,000 | 2,450 | 1 lot EUR/USD @1.1555 | — | 300 | 300 | — | — |
| Step 7 · Investor #1 withdraws 1,000 USD → autocorrection | 880 | 1,750 | 0.6 lots EUR/USD @1.1555 | 0.4 lots @1.1700 +580 realized | 580 | 1,450 | 0.6 lots EUR/USD @1.1555 | 0.4 lots @1.1700 +580 realized | 300 | 300 | — | — |
Closed volume = 1 lot × 1,000 / 2,450 = 0.4 lots
Profit (0.4 lots) = 0.4 × (1.1700 − 1.1555) × 100,000 = 580
Master balance = 1,300 + 580 − 1,000 = 880
Balance #1 = 1,000 + 580 − 1,000 = 580
Remaining open = 1 − 0.4 = 0.6 lots (master and #1)
Master equity = 880 + 0.6 lots × (1.1700 − 1.1555) × 100,000 = 1,750
Equity #1 = 580 + 0.6 lots × (1.1700 − 1.1555) × 100,000 = 1,450A brand-new position is reallocated to both investors in proportion to their equities (1,450 and 300, total 1,750 = master equity). Investment #2 finally receives a copied position — but only this one, not the earlier EUR/USD trade.
| Schritt | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD — no reallocation | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
| Step 5 · EUR/USD rises to 1.1700 | 1,550 | 3,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 2,450 | 1 lot EUR/USD @1.1555 | — | 550 | 550 | — | — |
| Step 6 · Investor #2 withdraws 250 USD — no autocorrection | 1,300 | 2,750 | 1 lot EUR/USD @1.1555 | — | 1,000 | 2,450 | 1 lot EUR/USD @1.1555 | — | 300 | 300 | — | — |
| Step 7 · Investor #1 withdraws 1,000 USD → autocorrection | 880 | 1,750 | 0.6 lots EUR/USD @1.1555 | 0.4 lots @1.1700 +580 realized | 580 | 1,450 | 0.6 lots EUR/USD @1.1555 | 0.4 lots @1.1700 +580 realized | 300 | 300 | — | — |
| Step 8 · Trader opens GBP/USD buy 1 lot @ 1.3000 | 880 | 1,750 | 0.6 lots EUR/USD @1.1555 1 lot GBP/USD @1.3000 | — | 580 | 1,450 | 0.6 lots EUR/USD @1.1555 0.83 lots GBP/USD @1.3000 | — | 300 | 300 | 0.17 lots GBP/USD @1.3000 | — |
Volume #1 = 1 lot × 1,450 / 1,750 = 0.83 lots
Volume #2 = 1 lot × 300 / 1,750 = 0.17 lotsNote the divergence
Investment #2 never received the original EUR/USD position (it deposited after that trade opened, and deposits trigger no reallocation), so the two investors now hold different portfolios — exactly the performance divergence the warning above describes.
