A.I.M. Users Bulletin Board

[ls7550]

Hi LC

There's a javascript based calculator for Proportional Step Ladder you can have a play with at http://www.jfholdings.pwp.blueyonder.co.uk/ladder_proportional_v3.htm

You could also set the bottom of the ladder at the bottom of the bear and the top of the ladder at about 150% to 200% of that. you should get most of the next bull market

The whole thing with Ladder is the choice of the top and bottom price levels. The narrower the interval the greater the volatility capture gains will generally be. Where however the range is too narrow and the stock price breaks out of the range then you're 100% all-in or 100% all-out and have to wait for a reversion back into the Ladders range.

For topping out (price above the ladder's top price) that isn't really an issue as you're already 100% in cash anyway and can just restart a new ladder with a higher top, so primarily the major issue is that of the Ladder bottom price level.

I'll have a look at your spreadsheet link - thanks.

Best. Clive.