Friday, September 25, 2009

With Fixed Ratio Money Management




Here you can really see the difference in performance when appropriate money management rules are added.


I choose (of personal taste) Fixed Ratio MM from the author of the book "The Trading Game - playing by the numbers to make Millions" by Ryan Jones instead of Fixed Fractional MM made popular by Ralph Vince in his book "The mathematics of Money management - risk analysis techniques for traders". You can find out the reasons for choosing fixed ratio over fixed fractional in his book, I don't wish to discuss here.

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