Admiralex Ltd
Pippiros Building, 3rd floor
22 Spyrou Kyprianou
3070, Limassol, Cyprus
Tel: +357 25 333 102
Email: info@admiralmarkets.com.cy
CySEC Licence number: 201/13
Registration number: HE 310328
How does MAM-Manager account work?
The MAM account type provides traders with an opportunity to invest their funds by letting
experienced traders do the actual trading for them. All trading activities are concentrated on
a single money manager’s account wherein the funds of all investors are consolidated.
Investors, without performing any trading operation, may earn profit by simply entrusting the
whole trading process to their chosen fund manager. As for the manager, he or she receives
an agreed upon amount which serves as commission from investors for managing their funds.
For example, there is a manager account MAMM_01 and three investor’s accounts –
MAMI_01_01, MAMI_01_02, MAMI_01_03 with deposits of $10,000, $20,000, and $30,000
respectively. In this case MAMM_01 would have deposit 60K. Lets assume, lead trader makes
a profit of $6000 as a result of trading. When the trader closes the position, the profit
compensation procedure activates (remuneration procedure activates automatically after a
certain time period) and following profit shares will be transferred to the investors’ accounts.
MAMI_01_01 - $1000.00;
MAMI_01_02 - $2000.00;
MAMI_01_03 - $3000.00;
As a result the new balance ammounts would be:
MAMI_01_01 - $11000.00;
MAMI_01_02 - $22000.00;
MAMI_01_03 - $33000.00;
----------------------------------MAMM_01 - $66000;
As said above, in the MAM system all the deposits are combined under one manager’s account,
i.e. sum of the investors’ deposits is equal to the deposit on manager’s account.
How to become a manager?
In order to become a manager, it is necessary to open a 'MAM-Manager' account under Traders
Room section 'Manager accounts'. In the registration form, the MAM-Manager needs to set
three parameters which will be applicable for his Investors:
“Control account” - This is a special non-trading account into which all of the manager’s
compensations will be credited to. If this type of an account already exists, it will be selected
by default, if not, or it is needed to create a separate control account for the registered MAMManager, 'Open new control account ' should be selected from the drop-down list. Control
Admiralex Ltd
Pippiros Building, 3rd floor
22 Spyrou Kyprianou
3070, Limassol, Cyprus
Tel: +357 25 333 102
Email: info@admiralmarkets.com.cy
CySEC Licence number: 201/13
Registration number: HE 310328
account is a non-trading account and is used exclusively for the exchanges between investors
and the manager.
“Profit fee” - Specifies the fees an investor has to pay their manager as a percentage of the
profit. It is charged from investors accounts and transferred to a managers control account.
The value can range from 0% to 100%, but the generally accepted normal values for this
parameter do not exceed 30-40%. In the MAM system the procedure for the calculation of
profits is activated automatically after certain time interval, provided the Manager’s account
has no open positions and/or pending orders.
Important: When calculating manager’s Profit Fee 'High Water Mark' principle is used. This
means that if the manager loses money over a period of time, he/she must get the fund above
the high water mark before receiving a performance bonus. For example, say after reaching
its peak, a fund loses 10,000 USD in year one, and then makes 50,000 USD in year two. The
manager, therefore, not only reached the high water mark, but exceeded it by 40,000 (50,000
– 10,000). This is the amount (40,000) on which the manager gets paid the Profit Fee.
“Volume fee” - Fee paid to the manager from the trade volume of Manager’s account, defined
as a percentage. The value can range from 0% to 0.1%. For example, if the volume fee is
0,005% and the MAM-Manager account opened and closed the position buy 1 lot eurusd at
1.27580. Then, from Investor account, $6,38 will be debited and the same amount will be
credited to the manager’s control account. It would be a balance operation based on the
following calculation:
1lot eurusd = 100000 EUR = 100000 * 1.27580 = 127580$
127580$ / 100% * 0.005% = 6.38$
Volume fee calculations are made automatically, in real time, upon the closing of transactions.
“Minimal investor deposit” - Minimal deposit required by the investor shown in the currency
used on MAM-Manager. Investors with smaller deposits are permitted to connect to the MAMManager. The value can range from 0 (in this case, there are no restrictions) to infinity. Careful
attention should be paid when filling out these fields, as after connecting the first subscriber
it will be impossible to change them.
After successful registration MAM-Manager account will be activated and ready for use. The
manager can receive connections and begin trading. The account will be displayed in the
rankings of MAM-Manager accounts, and subscribers will be able to choose it for managing
their Investor accounts.
Deposits and Withdrawals.
The MAM-Manager cannot deposit directly to his or her manager account, the only way to
replenish balance is to connect his or her personal MAM-Investor account to his own Manager
account. Deposit option is also disabled for the Control account, however, all withdrawal
requests are processed as usual.
Admiralex Ltd
Pippiros Building, 3rd floor
22 Spyrou Kyprianou
3070, Limassol, Cyprus
Tel: +357 25 333 102
Email: info@admiralmarkets.com.cy
CySEC Licence number: 201/13
Registration number: HE 310328
How managers account is seen in the rating?
When opening an account, managers define whether or not he/she wants his/her account to
be shown on the List of Managers, which is visible to potential investors.
In order to make managers account visible on the rating list, one should navigate to the
'Managers Account' tab in the Traders Room, then click on the 'Account Options', and choose
the 'Manager's Parameters' option. After clicking 'Display account in the rating of managers',
account will become visible on the roster.
Investors can still subscribe to managers account which are not visible on the rating list if
investors know the manager’s account number. In the 'Account Options' menu, investors
should click on the 'Subscribe' link, and manually fill in the manager’s account number.
Managers rating, signal provider, and manager result indicators.
The managers rating list presents several indicators showing their trading results, allowing
investors to choose the most suitable manager or signal provider for him/her.
The manager’s account gets to the rating list after the manager closes his/her first trading
order. Rating data is updated once a day.
Rating presents following indicators:
“Experience Days” – the days passed since first trading operation on account
“Total Trades” – the number of trades on the account (only closed trades are counted)
“Profit %” – the value of account net profit in percentage from initial deposit
“Maximum Drawdown” – the gap between maximum and minimum value of account balance
that shows how much investor could lose
“Subscribers” – the number of investor accounts that are connected to manager accounts
“Balance” – the value of account balance at the moment of the latest rating update
“Equity Capital” – The sum of the net worth of funds on the manager accounts considering
open positions, and net worth of funds on its investor accounts considering open positions as
well. For MAM, it is only the sum of funds on investor accounts. For a MACM-Demo account,
this parameter is equal to zero.