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>Date: Mon, 08 Jun 1998 20:47:21 -0500
>To: Timothy Morge <tmorge@xxxxxxxxxxxxxxx>
>From: "Bruce E. Harrison" <trader@xxxxxxxxxx>
>Subject: Re: Real-Time Trading
>X-Attachments: C:\Eudora\Attach\Dz.ela;
>In-Reply-To: <357C57D7.C868F676@xxxxxxxxxxxxxxx>
>References: <3.0.3.32.19980608155924.007af1b0@xxxxxxxxxx>
>
>Hi Tim,
> Fixed Ratio is a form of money management developed by Rumery and Lehman
were you increase and decrease the number of contracts your trading based
on a dollar amount vs. fixed fractional that bases the number of contracts
traded on a percentage of your capital (closed equity, open equity and many
other variations). see www.smarttrading.com, www.iitm.com etc.
> I am not sure who developed the concept of dynamic zones but it wasn't
me. They are overbought/oversold zones that vary depending on the
volitility of the indicator.
> example: RSI is typically considered overbought with a reading > 70 -
80. Using dynamic zones overbought might be 68 one week and 86 the next.
Below is the code for RSI. Replace the RSI with your favorite indicator.
Hope this helps.
>
>
>
>At 04:29 PM 6/8/98 -0500, you wrote:
>>Bruce:
>>
>>You refer to dynamic zones in your RSI [below]. Can you explain a little
to me,
>>please?
>>And can you also further explain "fixed ratio-Rumery and Lehman, fixed
>>fractional?" I like the replies you wrote in this thread and I am trying to
>>understand some of the more esoteric parts you spoke of below. Thanks
very much.
>>
>>Tim Morge
>>
>>
>
Bruce Harrison
<mailto://trader@xxxxxxxxxx>
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