PAMM (Percentage Allocation Management Module) is the system that shares one strategy's trading results across investors according to each investor's share of the funds. An independent Strategy Manager makes the trading decisions; only the investor can instruct withdrawals.
Also called: PAMM account, managed account, money manager, managed strategy
Hypothetical example
Hypothetically, two investors allocate $1,000 and $3,000 to the same strategy: 25% and 75% of the funds. If the strategy gains $400 in a period, $100 and $300 are allocated to them before fees; a $400 loss is shared in the same proportions.
