HYBRID PAM (*NEW*)

Mt.Cook HYBRID PAM (*NEW*)

PAM technology for Money Managers has been sorely lacking innovation for way too long making it RIPE for disruption and new innovation to move in. Mt.Cook offers a revolutionary breakthrough for money managers with our HYBRID PAM technology!  Built to spec with loads of customizations for our needs, this new software provides everything a money manager (and their investors) could ever want.

 

What is a Hybrid PAM?

Exclusive to our ECN clients, our Hybrid PAM is a special “game changing” software designed for both money managers and investors, empowering both parties with many safety tools, and valuable features to make life easier. The software combines many of the flexibility features of a trade copier, but with the “block execution” of a PAM, preserving the integrity of the trader’s “fill” and thus providing the best of both worlds between a trade copier and a traditional PAM.

 

What Makes it So Special?

The software provides 2 extremely valuable functions. 1.) It makes life incredibly easy for Money Managers. and 2.) It provides investors with flexibility, investment options, and risk protection (safety, and thus peace of mind)!

 

How is This Different From a Traditional PAM?

There are almost too many benefits to list, but here are the top 6 reasons why our Hybrid PAM is in a league of it’s own when it comes to fund management between advisors and investors.

1.) IT IS A TRUE MULTI-CURRENCY PAM

Investors can now maintain their accounts in any currency, all within the same PAM. In our case, it’s EURO, GBP, USD, and AUD (HKD, JPY, and SGD coming soon). There is no longer any need for investors to incur exchange/conversion fees or for managers to run multiple PAMs for each currency. Investors can now hold their investment in their preferred currency, and our Hybrid PAM technology settles all PnL allocations on the fly at the spot rate. In traditional PAMs, you must run and support and manage, a separate PAM for each currency you wish to offer to your clients – not efficient! Thankfully, this problem is now easily solved.

2.) CUSTOM RISK SCALING (set at the client level)

Much like a trade copier or signal software, clients can now set their own unique risk level. Risk is something very discretionary and unique to every investor and this is fully configurable now at the investor level. Example: if an investor wants more aggressive risk than their manager is taking, they can chose to set their account to receive trades at 2x (or double) risk. Or, alternatively, if they prefer less risk, they can chose to receive trades at a lower risk multiplier. Each client will have the ability to set this per their own individual preference at any multiplier they prefer (within reason – as high as 4x and as low as 0.1x).

This is particularly beneficial for those who want to notionally fund their accounts. Example: an investor could invest $100k with a fund manager, while depositing only $25K in their trading account and increasing their risk multiplier to 4x, thus reducing their “counter-party risk” by being able to keep the remaining $75K at home in their bank account (*NOTE: obviously additional risks may associated with notional funding and the use of risk multipliers).

3.) EQUITY PROTECTION (custom stop losses)

This feature is so important, it is sometimes hard to believe that most traditional PAMs don’t come with this packaged as a default option. With this feature, investors can now set their own unique “stop-loss level”, or what we call “Equity Protection”. Example: if an investor’s deposit for participation with a fund manager is $100K USD, and they do not want to ever lose more than $10K USD, they can set their own personal equity protection at $90k USD. So if equity reaches as low as $90K they will systematically be disconnected from the PAM automatically. Investors can then decide to join back in (or not) at their own discretion and on their time frames. This feature alone is PRICELESS! It provides peace of mind to both money managers AND investors so both sides can sleep easy at night, knowing that risk has been clearly defined and every investor’s downside risk always remains protected.

4.) CHARGE MULTIPLE TYPES OF FEES (up to 5 different kinds) – UNIQUE TO EACH INVESTOR – ALL CALCULATED ON AUTO PILOT!

Money managers rejoice! Gone are the days when you need to manually track high water marks, and invoice brokers for fees to be deducted from your client’s accounts.  Money managers can now charge unique performance fees, subscription fees, mgmt fees, commission markups, or spread markups, unique and custom to every single client, or IB, for their efforts from trading. Example: you can charge one group of clients 30% performance fee, and $2 per lot. Then you can charge another group of clients 20% performance fee and 2% mgmt fees. The choice is yours as a manager. The best part? The calculation of any and all fees, is all automated and requires no accounting whatsoever! Our Hybrid PAM technology does all of the heavy lifting for you! Focus on what you do best – trading the markets, and let technology handle the tedious work for you.

5.) AUTOMATIC IB PAYMENT TREES (up to 7 levels deep).

Do you have a sales force or a referral network? It is now extremely easy for a money managers (or investor) to profit share with partners on any type of commissions or fees charged, in real time, and automatically, up to 7 levels deep. Example, if a money managers charge their clients a 25% performance fee, and they wants to share 10% of that to 2 different introducers, this can be accomplished live and in real time by slicing up the 10% fees to the 2 IBs. Our software does this accounting and heavy lifting now, and you can profit share with up to 7 parties. IBs simply log in to their back-office, and withdraw the portion of the profit share at their leisure. There is no work required of the money manager.

6.) INVESTOR ACCOUNTS ARE ECN ACCOUNTS (not MT4), AND PROVIDE BLOCK EXECUTION AND INTELLECTUAL PROPERTY PROTECTION TO MANAGERS.

The only MT4 account in the hybrid PAM, is the manager’s master MT4 account (also available via FIX API). All investor’s accounts are ECN accounts (built in to our ECN), and remain independent from one another and the master. Thus, withdrawals and deposits do not effect anyone, unlike traditional PAMs. This also provides protection to the manager, so that their trades cannot be copied, stolen, or reverse engineered – as is all to common in the standard MT4 PAMM environment. Investors track and manage their investment in the web-based back-office which can be accessed on via the internet at any time.

Important: while all investor accounts remain independent from one another, the sum of all client orders go through to the market as one single block order, so all investors receive the same fill and there is no competition or disruption with the integrity of the order being filled. No slippage. No latency. One block order! Worthy of nothing – Investor allocations can be allocated down to 0.001 lots (a fraction of micro lot).

 

Web Based GUI – Making it Easy For Managers and Investors

 

Quick Approval For Talented Managers

At Mt.Cook and via our Global/International Division we take a different, yet holistic and common sense approach to PAM approval for Money Managers. It is quite simple – we welcome talented traders who manage risk well, and care about their investors.

Given that we run an agency only clearing model (no b-book), it is in our best interest (and investors as well) to focus our efforts on working with and supporting the small minority of traders who actually make money in the market, and manage risk well. Unlike market makers, we have a direct and vested interest in having profitable money managers trading here, succeeding, and sticking around for the long haul.

 

The Importance of Your Broker as a Money Manager

This is not to be understated. Trading the markets professionally is a difficult job and hard enough as it is without having to “deal” with your broker. Thus, money managers NEED to have a fair broker on their side.  Period. This is a strong focus of our business, and it is why we are here to support such candidates in multiple different ways along their journey. Because of this, it is no surprise that Mt.Cook has attracted some of the top talented money managers globally to date.

If you have any interest in our PAMM and Hybrid PAM Programs including additional support services in place for money managers, please get in touch with us, as we would like to hear from you.  Tell us a little bit about yourself, your trading strategy/history, and your plans to manage funds for your clients.

CONTACT US FOR MORE INFORMATION TO SEE HOW WE CAN HELP