# Business on One Page Worksheet

*Signal Pilot Education — companion to Lesson 100: The Business on One Page.*

Five numbers describe a trading business and they fail in a fixed order. The card below is the lesson's, filled in with its own figures on the right so yours has something to disagree with. Read down it and stop at the first row that binds.

> **Educational only.** Trading involves substantial risk of loss. Not financial
> advice. Past performance does not guarantee future results. Every number in
> this worksheet is one you measure on your own record; the figures in the
> right-hand column are what the lesson measured, and they are there to be
> disagreed with rather than copied.

---

## 1. Fill in the five rows

| # | Row | Where it comes from | Your number | Lesson 100's |
| --- | --- | --- | --- | --- |
| 1 | Pace | your own orders, per the pace worksheet | | 4.875 trades a month |
| 2 | Cost in R | round-trip cost ÷ one R | | 0.0796 R a trade |
| 3 | Net earning | (edge − cost) × pace × 1% of the account | | 99 a month |
| 4 | Withdrawal | what a household actually takes | | 500 a month |
| 5 | Sample | 7.85 ÷ the square of the net edge | | 18,952 trades |

## 2. Find the row that binds

Read from the top and stop at the first row that is worse than the row below
it can survive.

| | Your number | Lesson 100's card |
| --- | --- | --- |
| Row 1 binds? | | never binds alone |
| Row 2 binds? | | yes — takes 79.7 per cent of the edge |
| **Index of the binding row** | | 2 |

Row one sets how often everything else happens and cannot fail by itself. Row
two binds when the cost is a large share of the edge, and once it has bound,
every row under it is arithmetic on an edge that has already gone.

## 3. Take rows three and four to the year

A household lives in years, not trades.

| | Your number | Lesson 100's card |
| --- | --- | --- |
| Net earning × 12 | | 1,191 |
| Withdrawal × 12 | | 6,000 |
| **Shortfall** | | 4,809 |

That shortfall is before tax, before fixed costs, and before a single thing has
gone wrong.

## 4. Repair one row and recompute

Change the single input the binding row depends on. Leave every other input
alone.

| | Your number | Lesson 100's card |
| --- | --- | --- |
| What you changed | | held each trade twice as long |
| New cost in R | | 0.0398 |
| **New net earning a month** | | 294 |
| **Still short of the withdrawal?** | | yes |

Tripling the best row on the card moves the business from impossible to
infeasible. That is the honest reading, and it is the answer this worksheet
exists to let you reach on your own numbers.

---

## What you are holding when this is filled in

One card, one row index and one shortfall. The card is your business rather
than a plan for it; the row index is what to work on first; and the shortfall
is what the year is missing before anything goes wrong.

*Signal Pilot Labs, Inc. — /education/curriculum/professional/100-the-business-on-one-page.html*