PAMM ( percent allocation management module )

A percent allocation management module, or PAMM, which may also be referred to as percent allocation money management, describes a software application used predominantly by foreign exchange market (forex) brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit each managed account has its own ratio in PAMM. Trader's activity results (trades, profit and loss) are allocated between managed accounts according to the ratio.

Because currency trading and other forms of arbitrage achieve profitability within very narrow margins, typically, a PAMM system allows more money to be brought into play while distributing the risk of one trader across (usually) multiple investors.

Example:

Lets assume that there are 3 managed accounts under trader's management:

1. USD account with deposit of $ 100,000 and ratio 9.3%

2. EUR account with deposit of € 400,000 and ratio 49.5%

3. GBP account with deposit of £ 300,000 and ratio 41.2%

Depending on funded amounts different ratios are applied for managed account (for ratio calculation all amounts are converted in USD equivalent based on market rate). In case if, for example, Trader/Money Manager decides to BUY 10 mio EURUSD, PAMM allocates the order between managed accounts according to its ratio. Each managed account has its own part of position and corresponding Profit & Loss. In current example the first managed account will get position LONG 930,000 EUR/USD, the second - LONG 4,950,000 EUR/USD and the third - LONG 4,120,000 EUR/USD. Resulting profit & loss will be automatically calculated for each account depending on market prices.

Autosurf

Autosurfs are traffic exchanges that automatically rotate advertised websites in one's web browser. Therefore, they are capable of bringing a large amount of traffic to the advertised websites. Members earn credits for each site that they view, which can then be spent to advertise members' sites by adding them to the autosurf rotation. Sites may additionally be added by external advertisers who pay the autosurf operators.

Concept

Autosurfing is a unique form of advertising: normally, advertisers pay intermediaries to display advertising to their target audience, and the advertising is presented to the audience in places where they are likely to see it, such as in public places, or packaged with entertainment. In this sense, no money changes hands between the audience and the advertiser.

In comparison, autosurfers are paid to view pure advertising (that is, advertisers' websites) for a certain amount of time (usually, less than 30 seconds). Interested viewers can pause the surf timer or open any site in a new window, giving themselves more time to peruse an ad. If the viewer is not interested and does nothing, the surf timer will restart after the specified period of time and a new site will be loaded into the browser. The surf rotation requires no feedbacks of any kind; in contrast to manual surfs, paid to read email or paid to click sites.

Autosurfing allows members to promote websites of their own choice, according to a system of credits earned by surfing. Members usually earn credits in a fixed ratio to the number of sites they view. Member-promoted websites may or may not be their own websites. If not, they are most often the members' referral page at another autosurf or an online money-making program. This is because many autosurfs are structured as pyramid schemes: members may earn a commission for each site that their referrals view, and are therefore encouraged to build a downline.

As autosurfs are run from websites, online payment processors are used for members to upgrade and withdraw their profits. The most popular form of e-currency used is Liberty reserve or e-bullion. StormPay was a very popular payment processor until February 2006 but has now converted to an auction site.

"Investment" Autosurfs

A large number of autosurfs are investment autosurfs: to earn money surfing, members must pay a fee and are then promised a certain return on their fee. The "investment" is claimed to be a membership or upgraded membership fee and the "return", a per-site commission.

In the case of investment autosurfs, members either pay a fee to join and/or to upgrade their account level. This fee can usually vary from a few cents to thousands of dollars, and the minimum and maximum is set by the site operator. The program then offers a commission based on the member's account level for viewing a minimum number of sites, for example, for a period of X days, every day that the member views Y sites, Z% of the upgrade fee will be credited and can be withdrawn from the site. The product of Z% and X is always over 100% to ensure that the member makes a profit. Members also have even more incentive to build a downline because further commissions are received based on the amount of money that referred members put in or earn.

The investment autosurf concept is against PayPal's Acceptable Use Policy. Historically, Paypal has blocked most autosurf programs' accounts.

Controversy

A large amount of controversy is concentrated over whether autosurfs are inherently structured as Ponzi schemes. Traffic-only autosurfs that involve no monetary transactions can also be Ponzis if more credits are earned than page views available; older members are promised a certain number of website hits which can only be fulfilled by newer members joining. Due to the precedent set by 12 Daily, there is a strong possibility that most investment autosurfs are Ponzi schemes, and thus breaking the law and/or deceiving their users; whereas paid to surf sites usually had a viable business model where advertisers pay for the site to be viewed but not earn money in return.

On the other hand, autosurfs which require an investment and promise to pay a profit must, to not be a Ponzi, have other sources of income which can yield the high percentages they offer. Therefore, they often come under attack for failing to reveal their income sources or not registering with the proper authorities as a legitimate investment company. Ponzi schemes will end when no new investors are found, and it follows that autosurf sites have rather short life spans, existing from one week to a few years depending on the popularity and "investment plans" offered.