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Hi,
In a temporary fit of rage last night I deleted the individual who was
interested in more information on Fixed Ratio Money Management and will
thus post to the entire group.
I apologize for the untimely post but have been out of town for the last 2
weeks.
Also, out of respect for my good friend Ryan Jones who desires all the
credit for this Money Management technique I recommend you contact him at
Rumery and Lehman for further information (800) 978-6379.
Fixed Ratio attempts to maintain your risk(DD %) while increasing your
contracts and profit as follows:
Largest DD(Delta) * #Contracts + Previous Required Equity = Next Increase
Example: System X Maximum DD = $5,000, Your starting equity = $20,000
$5000 * 1 + $20,000 = $25,000 required to increase from 1 to 2 contracts
$5000 * 2 + $25,000 = $35,000 required to increase from 2 to 3 contracts
etc.....
This on scratches the surface as there are many variables to add. You can
adjust your delta to what ever you feel comfortable with (ie Largest losing
trade, 2X Max DD etc.) and also change your rate of decrease which I have
not explained.
As I said Ryan is the expert on this Technique and any further info many be
obtained from Rumery and Lehman. (I have absolutely no affiliation with
them other then being good friends with Ryan.)
Hope this helps, time to become a lurker again vs a poster. If
adults(including myself) cannot control themselves how are we going to ever
expect our children to contol themselves ( another terrible tragety in
Oregon ).
Thanks
Bruce Harrison
<mailto://trader@xxxxxxxxxx>
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