General Topics
Technical Topics
Brokerage Firms
Community Lounge
Site Support

# Fib Series can be used for lot orders

Discussion in 'Technical Analysis' started by kalzayani, Feb 19, 2007.

1. ### kalzayani

as U all know
That Fib series
Fib(n)=Fib(n-1)+Fib(n-2)
While fib(0) =1
and Fib(1)=1
ok so how can that be used in lots?

these are my orders for today on cable

% sure Long Long PT Long S/L
62% 1.9426 1.9438 1.9416
69% 1.9419 1.9440 1.9407
76% 1.9413 1.9442 1.9399
84% 1.9403 1.9446 1.9389
92% 1.9391 1.9450 1.9376
95% 1.9383 1.9452 1.9368
98% 1.9371 1.9456 1.9355
99% 1.9356 1.9462 1.9337
100% 1.9349 1.9464 1.9330

if i use 1 lot each then i get

Possible Loss Possible gain
0.0009 0.0013
0.0012 0.0021
0.0014 0.0030
0.0014 0.0042
0.0015 0.0059
0.0015 0.0070
0.0016 0.0085
0.0018 0.0106
0.0020 0.0114

0.0134 0.0540 total

The Ratio of Loss to gain
is 24.7%

if the use Fib =1 for the first order
Fib = 2 for 2nt
Fib = 3
...= 5
Fib( Lots)..etc

Looking like this for lots

1
2
3
5
8
13
21
34
55

then I get

Possible Loss Possible gain
0.0009 0.0013
0.0025 0.0042
0.0041 0.0089
0.0072 0.0212
0.0118 0.0475
0.0197 0.0906
0.0338 0.1780
0.0628 0.3603
0.1081 0.6295

0.2510 1.3415 total

Ratio of loss to gain =18.70% ---> Became a more effient trading method

I think I know why as well...
since risk or VaR...is in a way exponantial
then Lots should be as well (Hence Fib numbers)
...to linearize the total gain

2. ### kalzayani

That Loss/Gain Ratio

I think cannot be reduced Lower then 16.8%

3. ### kalzayani

That Ratio is minimized when the lots are increased in geometric
order
% sure Fib( Lots)
69.1462% 2
77.3373% 4
86.9705% 8
95.4246% 16
99.4317% 32
99.9927% 64
100.0000% 128

Lot=2^n

Funny

4. ### kalzayani

but one has to change the % sure levels

for usd/chf
today

% sure Long Long PT Long S/L _______ Short Short PT Short S/L Fib( Lots)
69% 1.2323 1.2333 1.2317 _______ 1.2362 1.2351 1.2368 2
77% 1.2319 1.2335 1.2313 _______ 1.2366 1.2349 1.2373 4
87% 1.2314 1.2337 1.2307 _______ 1.2372 1.2347 1.2380 8
95% 1.2305 1.2339 1.2298 _______ 1.2382 1.2344 1.2390 16
99% 1.2292 1.2344 1.2283 _______ 1.2396 1.2339 1.2406 32
100% 1.2273 1.2350 1.2259 _______ 1.2417 1.2332 1.2431 64

ET IS FREE BECAUSE OF THE FINANCIAL SUPPORT FROM THESE COMPANIES: