... Index 263 MONEY MANAGEMENT STRATEGIES FOR FUTURES TRADERS Understanding the Money Management Process In a sense, every successful trader employs money management principles in the course of futures ... for a given commodity This is known as the adjusted payoff ratio Therefore, the adjusted payoff ratio for commodity X is Adjusted payoff Payoff ratio for X ratio for X = Relative investment for ... just below the V-formation, for the start of an uptrend, or just above the inverted V-formation, for the start of a downtrend The logic is that once a peak or trough defined by a V-formation is violated,...