The Square Root Of 72 Stock Trading System

The Square Root Of 72 Stock Trading System

Peter William Fremlin created The Square Root Of 72 Stock Trading System in the year 2000 at the age of 42. Having studied the technical analysis of stocks, bonds, and commodities, since the age of 16, culminated in the 25+ years of design and development of this money management system. With basic math skills and an ordinary calculator, this brief 2 page document reveals its long-term value by testing it oneself with any stock chart and using multple (F) first price entry points. This is not a get rich quick system, but over time, √72 is unparalleled, as long as the stock stays above 0.

√72 Revealed

Level 1
This uniquely simple yet ingenious trading system is based on the square root of 72 and the equations: P ÷72 = D; I = P ÷ 10; B = F × .1273; and S = F × .0849. That’s it in a nutshell... A minimum account size of $10,000.00 is suggested, otherwise commission costs will eat up your profit. Stick with quality companies because chances that they will go to 0 are nil. There isn't a system out there that can help you then. With this system, the more the stock fluctuates percentage wise the better (higher beta average). Now let’s say you have a principal sum (P) of $10,000.00 and want to buy stock in a Quality Co. at whatever cost per share (F). How much do you buy? When do you buy more? When do you sell? Here’s how with √72...

For example; using an historical chart of Agnico-Eagle Mines Ltd. (AEM on NYSE), shows that starting with an initial (F) of $40.00, on May 6 in 2006, then seeing it drop over the next month, eventually returning by the fourth month to just above $40.00, immediately dropping again over the next month, finally reaching the $40.00 level again, leaving you just where you started from six months later. Although, by applying the formulae of Root72, using the exact (B) buy and (S) sell points thereafter, you would have shown an increase of %5.74 to %6.39, (based upon $15.00 to $9.99 commission per trade). With Root72, the maximum draw down of capital, was less than %40, leaving more than %60 of your capital in cash at all times, providing another %1.5 gain over the same six months, making the potential annualized return from %14.5 to %15.75. Put Root72 to work for you today and see for yourself.

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The Square Root Of 72 Stock Trading System

ISBN 0-9737086-1-1