Ok. So, the Fixed Ratio is great up to a point. But, because of the way it calculates, it will continually work the risk down to as near 0 as it can over time. This is not super ideal, and once you hit a certain level of risk, to continue to grow your balance at a decent pace (i.e. the whole point of this is to make your money work for you), you should then switch to something like the original fixed risk %. In doing this, assuming you fix that % at a small enough size, you will protect your capital from extreme loss. Below is an example. It's pretty self explanatory. The first shows a respectable profit of around $151k using the FR method alone. The 2nd one shows that by putting a minimum of 0.5% risk, the profit increases to $250k as the calculations auto adjust. ;-)
I'll be converting the excel shortly to a google spreadsheet so it's easier to share with everyone if anyone is interested.
I'll be converting the excel shortly to a google spreadsheet so it's easier to share with everyone if anyone is interested.
Markets can remain irrational longer than you can remain solvent - JMK
