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I am also interested in this money management approach. I believe Mr Jones
sells his software for $1600. This seems a little pricey. Can you refer
me to a book which covers these topics?? Or any other cheaper method.
Thanks
Bryan Finnegan
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> From: Bruce E. Harrison <trader@xxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Fixed Ratio
> Date: Wednesday, May 13, 1998 5:17 PM
>
> Hi Phil,
> I am very familiar with Fixed Ratio and its developer Ryan Jones at
Rumery
> and Lehman. I believe Fixed Ratio is a fantastic Money Management
Concept.
> For instance I traded a system last year starting with $25,000 and
within
> 8 months had $145,000 using Fixed Ratio. The problem is that my system
> failed and broke 2X its maximum DD forcing me to retire the system and
> ending with an account balence of $62,000.
> Fixed Ratio adds contracts at a fixed $ amount vs. a fixed %. You can
be
> very aggressive with your delta or very conservative. What you need
(which
> by the way everyone needs) is a system that has a CONSISTANT positive
> expectation with frequent trades. If you have a system that is approx
> 50-60% accurate, < $10,000 historical drawdown, and an average
trade(w/l/d)
> approx $300-$400 Fixed Ratio will dramatically increase your profits with
> only a slight increase in risk.
>
>
>
> At 08:19 PM 5/12/98 -0700, Phil wrote:
> > I got an advertizment from Rumery & Lehman today about their Fixed
Ratio
> >Money Management system. It seems to be a way of adding or subtracting
the
> >amount of contracts to trade to make the most profit with the least
> >drawdown-risk? It shows unbelieveable returns using the Fixed Ratio
method
> >compared to trading just one contract. If anyone has any idea of what
fixed
> >ratio is, I would like to get an overview of what it is and how it works
> >etc. It looks to be a better and safer way to know when to add or
subtract
> >contracts in trading to get the most profit with least risk? Anyone
have
> >any ideas?
> >
> > Thank You,
> > Phil
> >
> Bruce Harrison
> <mailto://trader@xxxxxxxxxx>
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