where can I get that spreadsheet?i gave him a spreadsheet on how to leverage it up - seriously
the guy was n a car wreck and in a coma when he came out his kids had stolen everything cause they thought he would die. he got released and had nothing is in a wheelchair but he had a good income from a retirement. he answered an ad my son had placed for a rental and from there he is no where near back where he was but he's not penniless.
fixed ratio money management is like a rocketship for investing and trading. the only difference or mod that i suggest is to not back down the number of contracts once you get going. other than that you figure out your delta based on your risk tolerance and off you go.
m
without fixed ratio
with fixed ratio
Down to about $90k, where would you park it if your trading skills were trash?
- Thread starter zghorner
- Start date
i have given it out often and it's on the dropbox of several peoples in this forum
pm me email to send it to.
i gave him a spreadsheet on how to leverage it up - seriously
the guy was n a car wreck and in a coma when he came out his kids had stolen everything cause they thought he would die. he got released and had nothing is in a wheelchair but he had a good income from a retirement. he answered an ad my son had placed for a rental and from there he is no where near back where he was but he's not penniless.
fixed ratio money management is like a rocketship for investing and trading. the only difference or mod that i suggest is to not back down the number of contracts once you get going. other than that you figure out your delta based on your risk tolerance and off you go.
m
below are based on my futures systems not the stock dividend trading but gives you a idea of what can be done with fixed ratio. note below the number of contracts went from 1 to 27 without any additional drawdown in the acct.
without fixed ratio
with fixed ratio
The "Fixed Ratio" money management technique, developed by Ryan Jones, is a position-sizing method used in trading. The goal of this strategy is to control risk while gradually increasing position sizes as the account grows. It is particularly popular among traders who focus on capital preservation while aiming for growth over time.
Here's a breakdown of how the Fixed Ratio money management technique works:
Key Concepts:
Formula for Fixed Ratio:
- Delta (∆): This is the incremental amount of profit required before adding an additional contract or position. For example, if the delta is set to $5,000, the trader must earn $5,000 in profits before adding another contract.
- Position Size: The number of contracts or units traded increases as the trader meets the predefined profit thresholds. The key idea is to gradually scale up the position size in a controlled manner rather than exponentially increasing risk.
- Risk Management: The technique ensures that as a trader increases the number of contracts, the added risk grows at a decreasing rate. This is because the capital required for each subsequent contract grows progressively larger as profits accumulate.
The number of contracts or position units is calculated as follows: Number of Contracts=1+(Account ProfitDelta)\text{Number of Contracts} = 1 + \left( \frac{\text{Account Profit}}{\text{Delta}} \right)Number of Contracts=1+(DeltaAccount Profit)
For example:
Advantages:
- Initial delta = $5,000
- After earning $5,000 in profits, you can add one more contract.
- After earning an additional $10,000 in profits, you add another contract, and so on.
Drawbacks:
- Controlled Risk: By setting a specific delta, traders avoid over-leveraging and ensure that position sizes grow in line with their account's growth.
- Steady Growth: The method encourages gradual position sizing, which balances between growing profits and controlling risk. It provides more stability than the more aggressive "Fixed Fractional" approach.
- Prevents Overtrading: The requirement to hit profit milestones before increasing position size discourages impulsive or overly aggressive trading.
Comparison to Fixed Fractional Method:
- Slower Account Growth: Compared to riskier strategies, the Fixed Ratio approach grows an account more slowly, especially in the beginning.
- Complexity: Some traders may find this method a bit more complicated to implement and maintain compared to simpler methods like Fixed Fractional position sizing.
In summary, the Fixed Ratio technique is a conservative approach to scaling up trading size, helping traders grow their accounts while minimizing the risk of taking on too much leverage too quickly. It is particularly useful for long-term risk management and capital preservation.
- In Fixed Fractional position sizing, traders risk a fixed percentage of their capital on each trade. As the account grows, the position size grows proportionally.
- In contrast, Fixed Ratio position sizing increases position size more conservatively, based on reaching specific profit increments (delta), thus managing risk more effectively as the account grows.
this is super ingenuous. He didn’t make his money “buying dividend stocks.” He made his money on massive leverage, which requires the oversight that the OP is not looking to do.
what are you selling here?
sorry i have no smarts for sale - so you'll have to do without... tell des kma
also you're so stupid you didnt get that these profits were made with no additional risk that trading small. you just jumped to conclusions with reading anything cause you had to rush back and suck des dick i guess.
that’s okay. I bought dividend paying stocks and 100x my money in a year.
I ignored the rest of your post about your spreadsheet since it had nothing to do buying dividend stocks and reinvesting them. Your post was so off the mark, like you were called out on a lie and tried to pivot to something else.
the omission of fixed ratio was left out of the original post for several reasons.
when i got called out i disclosed it and i proved it was real, just like you can on your own.
i would challenge you to check it out and come back here and tell me how wrong i am.
There isn't a single div-payer (>3%) that had total returns >100% over that period. MB is insane.
#bently
lol what leverage is he getting beyond PM or RegT?
OK, so let's refresh.
Dude is in a coma! Awakes to find out his kids squirreled away his cash and he's (nearly) destitute. Wait... he's got $20K and does a 10-bagger in DRIP! But he's also got his pension which allows him to conveniently leave it untouched?
18 billion dollar man.
#bently
I’d like to address a few things after yesterday's interaction. If you had any reputation left, I believe it may have been damaged. From what I've observed, you come across as less credible, and frankly, some of your comments made me question your maturity.
It's not just about you, though; it seems there are others under various usernames and a group of followers who seem to idolize without thinking for themselves. I'm looking for a fair competition that can settle this on neutral ground. A trading competition, for example, would allow us to measure skill directly. This would give me the chance to prove my point, as I did with Jack Hershey and his following.
So, if you’re up for it, let’s agree on the terms and get this started. Though, I’m not expecting much out of it beyond what usually happens—like you changing your username and coming back with more baseless claims.