Figure 26.4 shows the input variables we can alter to alter the calculated
results in Figure 26.5. By altering the fictive risk in cell C3, all the values in Figure
26.5 will change as a result of all the changes that will take place for each day or
row, for all markets and trades recorded in the spreadsheet. More specifically, by
altering the value for the fictive risk in cell C3, we alter the amount of money
allowed to be risked in each trade, given the total amount of money available as a
result of all the days of trading leading up to each new trading day.
Thus, although the data recorded on a one-share basis always will look the
same, the actual result of that trade will change with the value in cell C3, and how
that value not only changes the amount of capital allotted to a specific trade, but
to all other trades as well.CHAPTER 26 Dynamic Ratio Money Management 311
FIGURE 26.3
Trades to be tracked for the Excel spreadsheet.