Yep, so my first try was divergent as well.. If you can calculate the total sum of a combo A+B position, for all known B's, and the potential profit against the potential SL, and you worked out an equation that was convergent.. then you will note ...

Optimized Risk vs Reward Equation

If i buy 2.4 lots @ 91.58 in jpy, then I have a "long position" in jpy. so that's what i mean by position. Now, as an example, I can buy 1.5 more lots at 92.14 or 1.8 lots at 92.45 (just making up numbers) what should my decision be??? well, since ...

Optimized Risk vs Reward Equation

With the reference to the 4-minute mile, Dopey is correct. Once you know someone can do it, the "magic" is gone, and everybody starts doing it. Craig.. I post my research in hopes that it will greatly cut down the time for other people who are ...

Optimized Risk vs Reward Equation

mathematician.. are you familiar with the 4 minute mile and its history? if so, this will have answered your question..

Optimized Risk vs Reward Equation

C is the long side of phi.. yes, it is or can be represented as the average of the positions. If C were the short side, then you wouldn't be able to pyramid..

Optimized Risk vs Reward Equation

Because we can calculate every scenario and calculate the risk and reward of every position.. A divergent result will give you an infinity (aka non-answer) a convergent result will give you a maximized reward, or minimized risk. A combo of ...

Optimized Risk vs Reward Equation

The biggest concept I've gained from e, is that e "eats into itself", derivative of ln(e) like state. That is really critical.. Without an equation that behaves similar, you can't continue the pyramiding. Also, it prevents the "shrinking pyramid" ...

Optimized Risk vs Reward Equation

I believe that just like you can get 10 chefs and give them the same recipe, you'll end up with 10 different dishes; so it is with FX. All 10 dishes can taste great, and all 10 methods for FX might be profitable, so there is no one right way. But i ...

Optimized Risk vs Reward Equation

mikkom, I use it in my trading right now. Why wouldn't I? Wouldn't you?? I am thinking about putting all this in a book.. but I'm scared the book is going to grow to 300+ pages. Also, I haven't even done my FX reversal book yet!

Optimized Risk vs Reward Equation

Not regardless of market condition; but basically iff (iff = if and only if, not a typo) iff the first position, lot size X at position A is a winner, and reaches point B, then you are guaranteed a few things. Let me give it in an example everybody ...

Optimized Risk vs Reward Equation

What I'm saying is, given X lot size at location A, there exists a Y lot size at location B, such that risk is minimized and profit is maximized.

Optimized Risk vs Reward Equation

I could not prove both postulates and the math contradicted my original postulate (I also see a typo in there.. it should say "treated") But I figure it's a good starting block to work off of for those who are interested in the math aspects and what ...

Optimized Risk vs Reward Equation

I had tried quite a bit with the golden ratio; and I was really disappointed when EVERYTHING was divergent.. My original theory was, that there exists a point in space, in which a risk graph with respect to position, and a trans-axel'ed profit graph ...

Optimized Risk vs Reward Equation

I attack a problem quite differently than most I know.. I start by analyzing the math. If the logic vs math are completely different, then I trust the math. For example, logically, averaging down makes more sense; but mathematically, averaging up ...

Optimized Risk vs Reward Equation

Optimization of Entry/Exit pair. Optimization of Entry/Entry pair. Mathematically, an entry without either a paired Exit or a secondary entry cannot be called good or bad.. Given F(x) to be the entry, and G(F(x)) to be the exit; F(x) cannot be ...

Optimized Risk vs Reward Equation

Was searching for something and found this.. wow.. old.. Raz still around??

Dumb blonde trading...

While I can't show equity growth.. (NDA) To answer someone's question that they asked; yes I am still trading the fist, and yes it is still very profitable. Ha! I post a reply because 8~10 people ask me the same question and so I figure it's far ...

Personal Journal of The Fist Method

Doctor Who! — I started watching "The New Doctor Who" (BBC) today, and I discovered that there was actually a word that describes what The Fist Method does! The Fist actually does what is known as "Tardising", from the word "Tardis" the tv ...

Personal Journal of The Fist Method