Soros with risk management: logic and limits

Soros with risk management: logic and limits
Soros with risk management: logic and limits

Soros with Management, do you know what it is?

How to Develop Soros worksheets to Increase Your Performance in the Financial Market

When I started in the financial market, I quickly realized that I needed tools to improve my performance. In this sense, one of the strategies I found was the Soros Method, known in management materials as progressive reinvestment of earnings. He is widely known for dividing his operating capital into 10 parts, using a fraction of each for his operations.

Original worksheet examples, readable without images

These HTML tables reproduce the legible figures in the original screenshots. They are theoretical examples, not suggested settings or expected returns. Rounding is preserved; no probabilities or trading costs are shown in the original.

Soros reinvests proceeds after wins. The figures assume consecutive winning trades; a losing trade interrupts the sequence and can erase reinvested gains.

Profit reinvested: 50%

Payout on a winning trade: 80% · Initial stake: 10.00

Soros — 50%
EntryStakeProfitTotal
110.008.0018.00
214.0011.2025.20
319.6015.6835.28
427.4421.9549.39
538.4230.7369.15
653.7843.0396.81
775.3060.24135.53
8105.4184.33189.74
9147.58118.06265.64
10206.61165.29371.90
Profit reinvested: 100%

Profit reinvested: 100%

Payout on a winning trade: 80% · Initial stake: 10.00

Soros — 100%
EntryStakeProfitTotal
110.008.0018.00
218.0014.4032.40
332.4025.9258.32
458.3246.66104.98
5104.9883.98188.96
6188.96151.17340.12
7340.12272.10612.22
8612.22489.781102.00
91102.00881.601983.59
101983.591586.873570.47
113570.472856.376426.84
126426.845141.4711568.31
1311568.319254.6520822.96
1420822.9616658.3737481.34
1537481.3429985.0767466.41
1667466.4153973.12121439.53
17121439.5397151.62218591.16
Stage
StageTotalInitial stakeProfit
1188.9610.00178.96
2188.9620.00168.96
3188.9630.00158.96
4188.9640.00148.96
5188.9650.00138.96
6188.9660.00128.96
7188.9670.00118.96
8188.9680.00108.96

 

The Soros Method and Its Benefits

If he was successful in his predictions, the profit would be reinvested. Furthermore, the result of the sequence would depend on the values, the payout and the number of hits. Inspired by this method, I developed a Soros spreadsheet and implemented a more efficient operating capital management system, which allows greater control and security in operations.

Customizing Profit with Percentages in the Soros Method

One of the innovations that I added to Soros’ spreadsheet is, precisely, the possibility of customizing the percentage of profit to be used in the second investment. This way, instead of reinvesting 100% of the profit, you can define a specific percentage, such as 50%, 30%, 70%, or another of your choice. This undoubtedly offers flexibility and allows for more precise control over risk and return.

Practical Example of Profit Personalization

Let’s assume you start with

10 dollars

in an operation with

80% payout

, generating

8 dollars profit

. In the second entry, instead of using the entire profit (100%), you could choose, for example, to use only

50% of profit

, what would they be

4 dollars

, adding to the

10 dollars

of the initial operation. So, your second investment would be

14 dollars

.

Return to Traditional Soros or Other Settings

If you prefer to follow the traditional method, you can choose to reinvest 100% of the profit, as is done in

Soros Method

classic, where the value of the second entry would be

18 dollars

. However, with the flexibility of the spreadsheet, you can adjust the percentage of profit used in each operation, depending on your strategy and risk tolerance.

Conclusion: Flexibility and Control with the Soros worksheet

Follow how this Soros spreadsheet works and discover how it can be a significant differentiator for the success of your operations. By allowing profit percentages to be adjusted, you gain more control over your decisions and can test different strategies to maximize your gains and minimize risks.

Therefore, watch the following video, where I explain how to apply this approach in a practical and effective way.

You can see the video on YouTube Here

If you want to download the spreadsheet for free, click here

Original video in Portuguese.

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