Portfolio Management Formulas Mathematical Trading Methods For The Futures Options And Stock Markets Author Ralph Vince Nov 1990 -

TWR=∏i=1N(1+f×(−TradeiWorst Loss))TWR equals product from i equals 1 to cap N of open paren 1 plus f cross open paren the fraction with numerator negative cap T r a d e sub i and denominator Worst Loss end-fraction close paren close paren

Framework : A formula-based approach that calculates the ideal percentage of capital to risk based on a system's historical performance, expected return, and its largest historical loss. Doing so ignores

This is the exact mathematical coordinates for maximum compounding efficiency. The Toxic Right Risking even a fraction more than Optimal and Short US Dollar

for each market independently and trade them all at full capacity. Doing so ignores . If you are trading Long Gold, Long Silver, and Short US Dollar, your portfolios are highly correlated. A single macro-economic shock could trigger the "Worst Loss" across all three systems simultaneously, wiping out the account. wiping out the account.