Method Fixed Ratio developed by Ryan Jones, means that the ratio of number traded contracts, to an increment of the capital, should be to constants. It is the basic concept of a method! Thus, at use of a method, risks increase only due to the received profit, allowing effectively reinvestment the earned profit.
Such approach, first of all, is interesting to aggressive speculators who use buy-power and perform inreaday trading on sevral stocks.
This method has been modified and generalized up to a portfolio which is presented in Fixed Ratio Calculator.
How to use the calculator? First it is necessary to initialize initial data on which the method leans:
- init asset – a seed capital. This value remains to constants during all time work of a method and never change.
- leverage – a leverage of your broker
- DD – maximal drawdown in percentage which you are ready to suffer on a portfolio.
- ticker – the stock’s name.
- price – the current price of stock, may be change a few.
- dd– drawdown used strategy for a year, or critical stop-loss, may be change a few, in points.
- shares – number of shares in conreact specification.
- part – a portion of stock of money eauation in a portfolio, in percentage.
No comments:
Post a Comment