I deal with something I call "Propensity". I use it instead of saying a statistical advantage because I usually can't prove the math of it; OR; the statistical advantage is there but might not be, depending on how much you are paying for bid/ask. ...

Optimized Risk vs Reward Equation

Zurich? You must be in the wrong group! hahaa.. In all seriousness; testing out my new found math.. and it's doing quite well...

Optimized Risk vs Reward Equation

Average Up / Average Down Paradox — Today, I also solved the "Average Up / Average Down" Paradox; and this also leads to solving the "I pick up, you pick down" paradox. So the problem is: If I have a position and I'm wrong, and I buy another ...

Optimized Risk vs Reward Equation

High/Low Paradox — I will try to without diagrams, explain the high/low paradox.. So let's say you are long on a position; and you want to add to that position. You would normally add if proven correct (a la Phantom's Gift) and so if you are ...

Optimized Risk vs Reward Equation

I'm not sure I can explain the high/low situation without complex graphs.. Just did a full pdf writeup on both of these things tonight actually.. so will give you the bookie dilemma: Problem: The Bookie's Dilemma Description of the Problem: This ...

Optimized Risk vs Reward Equation

This morning, I figured out the answer to the "high/low" paradox; which has plagued me for almost 4 years. I read a bunch of books in the last 2 months about how to be a bookie; not so much that I wanted to be one, but the "bookie dilemma" that ...

Optimized Risk vs Reward Equation

Most rice cookers can only control temp, but mine controls temp and pressure.. It has a rice selector so you can kind of give it a hint on how to cook the rice. It has an internal and external thermostat though; on a hot day, it will actually reduce ...

Optimized Risk vs Reward Equation

bigvlada, Do you have a rice cooker? Mine has inspired me to start applying Neuro-fuzzy logic to my FX.. Rice and water are not a linear relationship; most people don't know that. The more rice, the less water you need. So a neuro-fuzzy logic system ...

Optimized Risk vs Reward Equation

mbkennel, I don't know, a few dozen posts ago, I actually posted a photoshopped pic of my original assumptions.. The problem with this sentence is that you then have a "limited profit" mentality, because otherwise, how would you know what the ROI ...

Optimized Risk vs Reward Equation

TO MAKE RIGHT DECISIONS. I view it like poker; if you can see the cards the other guy has, would you make the same decisions? There are times when your hand is dominated, and nothing you could have done would have won; but if you made all the right ...

Optimized Risk vs Reward Equation

?? So which part of what I am saying is incorrect? And which part of my understanding of uncertainty are you certain that I'm wrong about? Give me an example, because if there's something wrong about my understanding of it, I definitely want to ...

Optimized Risk vs Reward Equation

Banning people from the thread — takef586, We must not be talking about the same thing here.. because why would my math converge to zero? Example: I start off with 15 lots. later on, I put in another 8 lots. my sl would be based off the ...

Optimized Risk vs Reward Equation

I'm sorry.. so I should spend a few hundred hours compiling a book; and then give it to you aholes for free? Was I born yesterday? I make over half a million a year? do you? no. THEN SHUT UP. I'd love to see your contributions to the Fx community.. ...

Optimized Risk vs Reward Equation

iCarumba, Let me give it to you in a nutshell. 2+ years ago, I theorized that there exists an equation in which once you have entered a position, the equation will tell you where to buy or sell next, how much to buy and sell, and where to put your ...

Optimized Risk vs Reward Equation

I have finished my ice tea e-book and it's now up for sale. If you want to know the URL, please PM me. I am wondering if there is enough interest to make it worth my while to write my big mega book of reversals. It's gonna take a LOT of ...

Optimized Risk vs Reward Equation

@bigvlada, I purchased and prepared a stereo system specifically to play white noise, and pink noise for my daughter. She's got a better stereo system than 99% of the human population, so don't worry about it! Sleep.. what's that??? ;-) My wife has ...

Optimized Risk vs Reward Equation

Remember, the first derivative is rate of change; but 2nd derivative is rate of rate of change. You have 3 variables, Entry, Exit, SL. We then have a 2nd Entry; and we begin by assuming that Exit and SL are shared amongst the 2 entries (and assuming ...

Optimized Risk vs Reward Equation

@bigvlada, I haven't decided yet, but this might be my last post on this forum.. So while debating if it will be or not, I thought I'd throw something at you to help you out. You have been by far the hardest working person on the forum to reproduce ...

Optimized Risk vs Reward Equation

@Pippopotamus, the membership fee is to weed out the freeloaders who aren't serious. Time wasters are the worst offenders.. not only are they a waste of time and resource, but they inject noise in subjects they know nothing about. Think of it like ...

Optimized Risk vs Reward Equation

I currently own 2 companies, will be opening up a 3rd, 4th, and 5th. I work from home, and my 2 companies take me a little less than 4 hours a month to operate; and they have highly profitable, with no debt, and their piggy banks are quite full. I ...

Optimized Risk vs Reward Equation