Tag Archives: Secure

General Business

The Evolution of Secure F


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Kelly F, Optimal F, and Secure F are all money management strategies used by many traders. While the strategies may seem different, Optimal F and Secure F are actually evolutions of Kelly F. To better understand the strategies themselves, it is helpful to know how they got to where they are today.

There are a few popular variations of fixed fractional money management that look for optimum fractions in order to generate the greatest returns possible when trading. These variations are the Kelly formula, Optimal F, and Secure F.

Kelly F was a concept that came from a Bell Labs researcher. This researcher, John Kelly, found that there was an analogy between growth rate of a trading account, and the rate of information transmission through a communications channel, such as a telephone line. This led to the Kelly formula. The formula is used to determine a fixed fraction that will maximize equity growth. A Kelly formula, however, assumes that losses and wins will stay the same. This means that if you are betting the same, risking the same amount, and you are looking to see the same return, it could be a great formula to use. Larry Williams used a variation of this formula when he won his world cup trading challenge. There are problems with the Kelly formula, however, which Optimal F tried to address.

Optimal F is a strategy that was made popular by Ralph Vince. Optimal F, just like Kelly F, assumes that there is an ideal fraction of equity that must be risked to maximize equity growth. Optimal F is, therefore, just an optimal fraction that can be used. The Optimal F fraction is based on a series of trades, and actually looks at the largest loss over a historical period. This number might provide a very nice fraction that can be used if everything is going right, but it does not address drawdowns. Secure F was created to address the problem of drawdowns.

Secure F is a calculation that is similar to Optimal F, but is based on the max drawdown instead of the largest loss. The creators of Secure F found that the Optimal F value typically led to a position that was not appropriate for a trader. Although Optimal F was based on the largest loss, if a drawdown occurred the Optimal F value was often too aggressive. The Secure F value was made to be more conservative. Keep in mind that a Secure F value will never be larger than an Optimal F value. And this makes sense because a largest loss does not account for a drawdown, which is a series of trades. That series of trades or that drawdown could be substantially higher than the largest loss. If you are basing your fraction, or your money management, on the largest loss it could be a little too aggressive for your trading and your account.

The advantages of using these variations and looking for an optimum fraction are that in an ideal situation nothing is better. With other forms of money management, if you trade with too small a position you are going to make money too slowly, and it might not be as efficient as using a more aggressive fraction. On the other hand, if you trade too large a position there is a possibility that you will blow out an account when you have an unexpected loss or drawdown. In theory, Secure F or one of its variations would be the best solution because it would maximize your money management and the potential returns that you could have on your trading account based on historical information. However, these money management methods can often lead to positions that are too large for many traders. These money management methods should be studied carefully before being implemented, but are generally not suitable for beginning traders.

General Investing

Income Drawdown- “Secure Your Old Age With The Unsecured Pension”

Income drawdown can also be termed as unsecured pension. This is a facility by which you can carry on keeping your retirement savings invested, and at the same time you can take an income each year rather than buying an annuity. Annuity is a policy which gives you an income after your retirement. Your residual amount will be invested in this arrangement of income drawdown.

You can buy this facility till you are 75 years old not after that. When you reach 75 you have to buy an annuity or you can transfer your money into an alternatively secured pension.

The amount or income that can be drawn from this scheme differs from year to year between a maximum and a minimum. The minimum can be 0 and the maximum is 120% of a pension calculated through tables provided by the governmental department of actuaries. These tables are based on the amount your money can buy as an annuity. It is based on your life only and you can’t increase the amount in the future. The maximum amount is recalculated after every five years.

There are certain advantages you can enjoy from this kind of arrangement. You can choose to buy the pension when the annuity rate is up to your liking. If growth is achieved from the invested residual fund and if the annuity price increases with your age you can buy a higher pension than the one you had bought in the beginning. Your residual fund will be returned after your death under this kind of pension which many other companies do not.

You cannot contribute to your income drawdown

If you die before the age of 75 your dependent or your wife will have three different option of getting back the money. They can take back a lump sum amount of the money which is taxable in the tune of 35%. They can continue with the income withdrawal or else can buy an annuity. A dependent’s pension can be delayed to a later date depending upon terms, rules of the policy.

The income obtained from the fund may get reduced if the investment growth on the residual money is not good. Though the level drained is monitored yearly. You don’t have the guarantee that you will get more money ultimately than the amount you had invested in the beginning.

The fund needed is in the tune of $100, 000 before you can start withdrawing your pension. This may look a bit heavy amount but you have to meet up the administrator’s charge, you may have to part with investment management fees.

You can transfer your assets in this arrangement from other plans or stakeholder schemes provided all terms and conditions are fulfilled.

On the basis of the points discussed it should be crystal clear to you that advantages in this kind of arrangement are more as compared to the disadvantages. You can definitely think of investing your money in this scheme to secure a better future.

General Investing

Secure Your Computer

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I think everyone should look into protecting their computer from unwanted Spyware and Adware, I recently had major problems with my computer which had me investing in better security for my browsing needs, before I was pretty careless with my online browsing and would visit many sites thinking I was safe, but unknown to me my computer was being infected with unwanted programs, all attaching to my browser.

Spyware and Adware is software made by publishers that allow them to snoop on your browsing activity, and invade your privacy, they flood you with those horrible pop-ups. If you are like most users on the internet chances are, you are probably infected with these applications or you have a good program that protects you already and your computer system is safe.

My computer was pretty badly infected and I got myself a good computer program, and ended all the Spyware and Adware attached to my computer, it was pretty easy to do and I know that my browser has no unwanted guests.If you want peace of mind and the knowledge that all your personal and sensitive material you have on your computer is safe, then, maybe this is what you are looking for. This is just one option of many out there. If your computer shows signs of being slow and you are being pestered by those horrible pop-up ads and your homepage keeps changing, then maybe it is time that you looked into protecting your computer. Just don’t leave it too late when you can so easily fix all your worries with a simple program designed to remove these bothersome Spyware and Adware attachments.