Jones goes on to do mathy things that show the DD using this method is smaller than what we’d expect trading FF. Even though FF produces larger profits faster on the back end, he claims no traders want to use it because of the fearsome DDs it ...

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image Always interesting to watch a trader who has been on an impressive run dig themselves into an antlion pit. The reason they have had such an impressive run? They can't take a loss. The market loves to grind these accounts into dust.

Clemmo's Trading Odyssey

Smaller fixed ratio progression example. The delta of the FR method is only $5000. It therefore only takes $20k to reach the $60k level, whereas FF needs $40k to reach $70k level. (doesn’t it need $60k?) Formula: Previous required equity + (No. of ...

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Chapter 6 - Fixed Ratio Trading Came about as a direct result of studying and breaking down the Fixed Fractional method. Risk and Reward Proper MM addresses both risk and reward. Optimal f only addressed overall growth, while fixed fractional only ...

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Unequal Achievement “The Fixed Fractional method requires unequal achievement at different contract levels.” This is its biggest drawback. If trading 1 contract per $10k in account Using $10k account You’d start trading 1 contract; that single ...

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Optimal F Popularized by Ralph Vince. Stands for Optimal Fixed Fraction Recall the coin-flipping game. 25% was the optimal fraction to use for max profits. Even 24% and 26% produce less optimal results. This method produces awesome growth but also ...

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No sign of dollar weakness nor can I imagine any reason for it but also note that it's in no hurry to drop. The market is pondering. Waiting to see what the greater fools will do, or for some news, like a worse recession than the one they're already ...

Clemmo's Trading Odyssey

Very stubborn, but it is now happening.

Clemmo's Trading Odyssey

Risking 2% or less on Every Trade Fund managers are fond of this one and it is recommended by trading books and brokers. Using this risk a $6k DD per contract would only bring the $100k account down to $93k. The problem with this is not the risk, ...

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Today we bid a sad farewell to goldeyes who has slipped out of the top 10. Any familiar names on this list? Yes indeed. Journey of 1000 soldiers khaidym93 FP_mini_18 ALEXNGO(numbers) Congrats to these guys for holding on for nearly 3 weeks! And ...

Clemmo's Trading Odyssey

One Contract for every $10,000 If Joe Trader has $100,000 account 1 contract for every $10k means he plays 10 contracts next trade If his max risk is $2k per contract his risk on the next trade is $20k This is NOT his potential DD. That’s his risk ...

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Chapter 5 - Fixed Fractional Trading Before this book, it was the only game in town, says Jones. This chapter fully explains the method but individual traders with smaller accounts should not use this method, says Jones. This method was recommended ...

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Largest Loss Same category as DDs. The largest single losing trade in a system or method (historical?) The largest single losing trade that will be suffered in a system or method (potential? I might be misunderstanding the distinction.) Not ...

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Drawdowns image DD = Drawdown The lowest point that equity reaches between two equity highs. Drawdowns kill, especially with leverage. DD is unpredictable. Past DDs don’t anticipate future DDs. DD must be controlled by avoiding the max DD. MM ...

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Mine also. Either they force it to close only or they made the swap unaffordable. I guess I understand why. It's just a sure bet.

Clemmo's Trading Odyssey

image The markets don't seem to be concerned about the Turkish earthquake. Either that or the Lira has been pushed as far as it can practically go. Either that or the dominant powers are just trying to figure out their strategy on the secret chat ...

Clemmo's Trading Odyssey

The Role of Margin Requirements Margin is just the amount of money needed as collateral for placing a trade. They are usually subject to change at any time for any reason and without warning. (now you tell me!) Exchanges don’t set margin ...

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