I am opening a thread to discuss a Money Management formula which I call Generalized Fixed Ratio. I also call it Shifted Power MM because when I first curve-fitted the fixed ratio position sizes, it resulted in an equation called, you guessed it, shifted power.
I will work up to it over a few posts, to cover all the bases. It is based on Ryan Jones' book on MM, except my version of Fixed Ratio does not lock you to a particular lot size, which is an important improvement, especially when you are dealing with mini or micro lots.
Comments and criticism are welcome here, just try to keep it on topic, and please let me complete my first series of posts (it will be obvious when I'm done, I'll include an excel spreadsheet at the end).
Note: the attachment in post #11 is out of date, the one at the top of page 3 is current and I am attaching it here also.
I will work up to it over a few posts, to cover all the bases. It is based on Ryan Jones' book on MM, except my version of Fixed Ratio does not lock you to a particular lot size, which is an important improvement, especially when you are dealing with mini or micro lots.
Comments and criticism are welcome here, just try to keep it on topic, and please let me complete my first series of posts (it will be obvious when I'm done, I'll include an excel spreadsheet at the end).
Note: the attachment in post #11 is out of date, the one at the top of page 3 is current and I am attaching it here also.
Attached File(s)
GenFixedRatio.xls
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1,814 downloads
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Uploaded May 29, 2009 4:29pm