Using MT4 MAM (Multi Account Manager)
1. Overview
Fullerton Markets MT4 MAM supports 4 allocation methods.
- Lot Allocation
- Percent Allocation
- Proportional by Balance Allocation
- Proportional by Equity Allocation
2. Login and initialisation
Download the MAM at
https://www.metatradertools.com/products/mam_v4/setup.exe
After the MAM is installed, you need to set the licence file (<MAM ID>.lic) to connect to the server. If you did not receive your licence file, please submit a request from the Fullerton Suite.
To set your licence file, go to File -> Set License and select your licence file.
After the licence file is set, it will ask for the master account password. The login ID is your MT4 MAM ID. Password is your MT4 MAM password that you have input during the application.
Note: If you have reset your password and accessed the MAM before the change, you are required to set your licence again before you log in with your new credentials.
When the MAM is loaded for the first time it is required to initialise the accounts before trading can be performed. To initialise the master account, select one of the allocation methods.
To enable the sub-accounts, select the sub-accounts and then right-click to select "Activate Selected" from the popup menu.
After the accounts are activated in the MAM, trading can be performed on the master account through the MT4 Client Terminal or the MAM.
3. “Accounts” tab
The "Accounts" tab of the MAM contains information about the managed accounts (sub-accounts) and MAM allocation parameters. The sub-accounts table contains all available sub-accounts, their properties and parameters.
The following parameters of the sub-accounts can be changed in the table:
Active – this parameter is used to enable the sub-account for trading. The MAM allocates trades from the master account to the Active sub-accounts only. The Active property of the sub-account applies to opening trades only. This parameter is ignored when closing trades because the MAM already knows which sub-accounts to allocate the trade to. The number of Active sub-accounts can be changed while trades are opened in the master account.
Lot – this parameter is used by the “Lot Allocation” method. This parameter defines the number of lots to allocate to the sub-account.
% (percent) – this parameter is used by the “Percent Allocation" method. This parameter defines the percentage of the master trade volume (or P/L) to be allocated to the sub-account.
Mode – this parameter is used by "Lot Multiplier Allocation" and "Lot Multiplier with Volume Fix" methods. It can be set to one of the following values: Multiplier, Fixed, Risk, Equity. For more details about different modes please refer to the Lot Multiplier Allocation method section.
It is possible to copy the same value of the parameter to more than one sub-account. Simply select the sub-accounts to copy the parameter to, right-click on the parameter which needs to be copied and then select "Copy Parameters" in the popup menu.
Allocation parameters can be exported to and imported from Excel. To export sub-accounts to Excel, select the sub-accounts and then select "Export to Excel" in the popup menu. The Excel spreadsheet can be modified and saved. To Import the sub-accounts parameters from Excel, select "Import from Excel" in the popup menu. The parameters of the sub-accounts listed in the Excel spreadsheet will be imported and applied to the sub-accounts.
The Summary tab shows the essential parameters for the allocation.
Sum Lot – the sum of Lot parameters for the active sub-accounts.
Sum percent – the sum of percent parameters for the active sub-accounts (this value should be 100%).
Balance – the total balance of all the sub-accounts (both active and inactive).
Currency – the deposit currency of the master account.
Accounts – the total number of sub-accounts (both active and inactive).
Active – the total number of active sub-accounts.
Active Balance – the current balance of the master account (equal to the sum of balances of active sub-accounts).
Active Equity – the current equity of the master account.
Active Margin – the current margin used in the master account.
4. “Allocation Method” panel
MAM can allocate the trades to individual sub-accounts by lots, percentages or proportional allocation to suit the overall structure of the trading or fund management style. Alongside the allocation methods are the allocation parameters for quick and efficient implementation.
4.1 Lot Allocation
This allocation method is used to divide the volume of the master trade to the sub-accounts according to the set Lot parameter of the sub-accounts. Lot Allocation allows trading with variable lot sizes on the master account.
⚠️When using the Lot Allocation, make sure to set the Lot parameter of at least one of the active sub-accounts greater than zero.
The general formula of the Lot Allocation method is:
For example, consider there are two active sub-accounts with Lot parameters set as 2 and 3 respectively.
If the master account trades 10 lots then the volume of the sub-orders is calculated as follows:
The volume of the first sub-account is 2/5 *10 = 4 lots
The volume of the second sub-account is 3/5 *10 = 6 lots
4.2 Percentage Allocation
This allocation method is used to divide the volume of the master trade to the sub-accounts according to the set Percent (%) parameter of the sub-accounts.
⚠️When using the Percent Allocation, the sum of Percent (%) parameter of all the active sub-accounts must be 100%.
The general formula of the Percent Allocation method is:
For example, consider there are two active sub-accounts with Percent parameters set as 30% and 70% respectively.
If the master account trades 10 lots then the volume of the sub-orders is calculated as follows:
The volume of the first sub-account is 30%/100% *10 = 3 lots
The volume of the second sub-account is 70%/100% *10 = 7 lots
4.3 Proportional by Balance Allocation
This allocation method is used to divide the volume of the master trade according to the balances of the sub-accounts. This method doesn’t require additional settings. The fraction of the master trade volume is calculated automatically.
The general formula of the Proportional by Balance Allocation method is:
For example, consider there are two active sub-accounts with balances of 10,000 and 6,000 respectively.
If the master account trades 10 lots then the volume of the sub-orders is calculated as follows:
The volume of the first sub-account is 6,000/16,000 *10 = 3.75 lots
The volume of the second sub-account is 10,000/16,000 *10 = 6.25 lots
The volume of the sub-accounts is rounded according to the lot step. If the lot step is 0.1 lots then the sub-accounts will be allocated 6.3 and 3.7 lots respectively.
4.4 Proportional by Equity Allocation
This allocation method is similar to the Proportional by Balance. The difference is that Equity is used instead of Balance. This method doesn’t require additional settings. The fraction of the master trade volume is calculated automatically.
The general formula of the Proportional by Equity Allocation method is:
5. “Master Orders” tab
This tab displays the master orders and the sub-orders. When the master order is selected the list of sub-orders is shown at the bottom.
Each sub-order can be closed by the MAM. Whenever the sub-order is closed, the master order is closed partially by the volume of the sub-order. To close the sub-order, double-click it. The Order Execution window will open, click the Close Order button.
The master trades can be closed in the same way. Double-click the master order to open the Order Execution window and click the Close Order button.
⚠️Sub-orders cannot be closed partially. Master orders can be closed partially.
Trades can also be opened on the master account from the MAM if the broker permits this option. To open a new trade on the master account from the MAM, double-click the Symbol from the market watch window. The Order Execution window will open. Set all required parameters of the trade in the Order Execution window and click the Buy/Sell button.
6. “Sub Orders” tab
The "Sub Orders" tab is used to track all the sub-orders. Sometimes there can be unallocated trades in the sub-accounts (for example, the sub-accounts are traded separately from the master account). This screen shows all the trades in the sub-accounts regardless of their allocation status. The sub-orders table allows a flexible visualisation mechanism using column grouping. Grouping can be made by any column. The default grouping is by master order. When expanding the grouped row, the sub-orders will be shown for a particular master order.
To export the sub-orders to Excel, select the sub-orders and then right-click on the sub-orders table. Use the "Export Sub Orders" option from the popup menu.
⚠️Do not select "Extract Selected Trades", as extracting sub-orders will result in losing control of your sub-orders.
7. “Reports” tab
This tab shows the history of trades on the master account and its corresponding sub-trades in a master-detail format. To request a history report, select the From and To dates, then click the Request button.
Expand the master trade record to display the sub-orders allocated to it (the sub-orders are lit green).
Select any number of trades and right-click on the table. The popup menu allows you to choose "Export to Excel" or "Export to HTML".
8. “Commissions” tab
The "Commissions" tab allows the calculation of different types of commissions.
There are three types of Commissions available:
a. Performance Fee – based on the High-Water Mark (HWM) algorithm. The high-water mark ensures that the manager does not get paid for poor performance. If the manager loses money over a period, he or she must get the fund above the high-water mark before receiving a performance fee. For example, after reaching a peak, the fund lost $100,000 in year one and then made $250,000 in year two. The manager exceeded the high-water mark by $150,000 ($250,000 - $100,000), which is the amount used to calculate the bonus to be paid to the manager.
b. Management Fee - a charge levied by the investment manager for managing the fund. The management fee is intended to compensate the managers for their time and expertise. It can also include other items such as investor relations expenses and the administration costs of the fund. Management fee structures are based on a percentage of assets under management. For example, 0.5% of assets under management.
c. Flat Fee – a fee per period, which remains constant regardless of the performance or the assets under management.
The first table of the Commissions tab shows all the sub-accounts and their parameters. The second table shows the history of trades on the selected sub-accounts.
It is required to pass through some steps to get the correct commission calculation.
- Select Interval. It can be a Week, Month, Quarter or Year. This parameter defines the period of calculation, for example, if you set Interval as Month then the commissions will be calculated based on the monthly periods.
- Select Period For. This is the starting date from which the commission is calculated. For example, if Interval is set to Month and Period For is set to 01.01.2014 then the commission will be calculated for January 2014.
- Set Flat Fee (in currency units), Performance Fee (as a % of profit) and Management Fee (as a % of Equity).
- Click the top table and select the sub-accounts to calculate the commission. Press Ctrl+A to select all the sub-accounts.
- Click Get History button. The trading history and Equity Reports will be retrieved from the server. It takes some time. The progress is shown at the bottom.
- The results will be shown in the top table. The Profit column shows the profit gained by the sub-account within the given period. The High Watermark shows the Highest Equity of the sub-account. This parameter can be modified manually, if it is empty then the High Watermark will be calculated automatically based on the total history of the sub-account. Once the High Watermark is calculated for the first time it is required to recalculate the fees based on this High Watermark again to get the correct Performance Fee for the given period.
- The results can be exported to Excel. Use the Commissions menu to export the results.
- It is possible to save current settings to make it easier to calculate for future periods. Use Commissions->Save Settings menu to save current settings.
- The commissions will be paid to MAM via International Wire Transfer or MT4 if you have an Introducing Broker (IB) account. The Commissions module of the MAM is used for information purposes.