Binomial Process Trading for Day Traders

Rocket Science Trading explains The RST Way: a day-trading risk-management framework built around fixed risk, controlled win/loss sizing, and binomial process trading.

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

Chart showing binomial process trading impact on equity trend
Binomial process trading (BPT) impact on equity trend

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.

It’s very rare when one change to your habits can instantly propel you ahead of 99% of your peers. 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 BPT.

To learn more, check out the links below, including

Trading platform showing automated share sizing and range orders for RST risk management
RST traders rely on automated share sizing and exits (range order) to enforce strict risk management controls enabling binomial process trading.
  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

How to Day Trade Like a Rocket Scientist book cover

Book– How to Day Trade Like a Rocket Scientist, Amazon (Kindle, Paperback)
or Read Here for Free!
Course– LearnToDayTrade.com
Community– Discord
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 with binomial process trading. The minimum win rate needed for breakeven will change with R/R ratio. For 1/1 it’s 50%, for 1/2 it’s 33%, and so on. Traders can use whatever R/R ratio works best for them.
  2. Is this method of trading unique/original?
    • Yes, as far as I know. Click here to see what ChatGPT has to say.