Ryan Jones’ book is one of the most important money management books for individual investors with account sizes less than $500,000. His fixed ratio money management technique described in the book could turn an ordinary system of positive expected value into a good size account safely and quickly.
- The technique is anti-martingale, which is against the gambling nature of human beings, and is one major obstacle to overcome for most of people.
- The exponential increase of contract sizes during winning streaks makes it difficult to be used in accounts more than $1 million, because very few liquid instruments can be used beyond that point.
- The advance in various long/short ETFs makes it possible to synthesize the fixed ratio in 1x, 2x, 3x, 4x etc in a security account without using futures contracts.
- Dr. Bryant’s software makes it possible to analyze the power of fixed ratio, in addition to many other money management schemes.
Following picture is from Ryan Jones’ interview in: http://www.tradingmarkets.com/.site/Swingtrading/commentary/satinterview/10142005-46432.cfm