Who

Rocket Science Trading is a community of day traders practicing “The RST Way” of trading, an innovative approach to risk management based on a new style of trading called “binomial process trading.”

What

The RST Way is a cheat code for trading. Instead of hemorrhaging money with uncontrolled trading that ends in swift bankruptcy, you can start out at breakeven with completely random trading using the secret of The RST Way, which we call “binomial process trading” (BPT). With more than 99% of day traders losing money1, The RST Way instantly propels you to the top 1% of traders.

“Cheat code” is a cliche that gets thrown around a lot, but it is an accurate description of binomial process trading. As a new trader, which equity curve below would you rather start out at?

It’s very rare that one thing can instantly vault you ahead of 99% of people doing something. This is not hyperbole- it’s basic mathematics and share size automation, which transform trading from a wild roller-coaster ride into predictable and controlled binomial process trading.

Binomial process trading is an innovative approach to risk management using fixed risk/reward ratio and fixed win/loss amounts. These controls transform trading into a binomial process where a win is a win, and a loss is a loss, similar to flipping a coin or rolling a die. This protects traders from wild equity swings, Gambler’s Ruin, Black Swan events, and every trader’s worst nightmare – one bad day wiping out weeks or months of gains.

Due to the fixed R/R ratio and win/loss amounts, the system breaks-even over time if the trader does nothing but go long or short at random (minus commissions, fees, and the bid-ask spread).

With this breakeven system in place, the trader only needs a little market awareness and trading skill to nudge the win rate a few more points to cover commissions and fees and be profitable.

  1. Barber, Brad M., et al. “The cross-section of speculator skill: Evidence from day trading.” Journal of Financial Markets 18 (2014): 1-24. ↩︎

Where

Books – Amazon
Courses – LearnToDayTrade.com
RST Community – Discord
Mostly Memes – 𝕏
Life – Instagram
Email – jason@rocketsciencetrading.com

FAQ

  1. Does the risk/reward ratio have to be 1/1, similar to flipping a coin?
    • No, any R/R ratio can be used.
  2. Is this method of trading unique/original?
    • Yes, as far as I know. Click here to see what ChatGPT had to say.