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sorry i made a mistake
I found a web site with twinvest /synchrovest type software .
the web site is reversedollarcostaverage.com . it is commercial software about $30.
Interesting find! A way to take money out in a variable format for greatest efficiency as a mirror-image to variably putting it in.
The question is do you need the software, or can you discern the algorithm from their samples and then construct the same thing for free in a spreadsheet? Not that $30 is prohibitively expensive, but if you can do it yourself, do you need the jazzed-up interface?
Hi Info
Glad I was of help.
The reason I made the comment I did was because of something that was rattling around in my own head which was the conflict of using AIM vs momentum styles of investing.
In talking to a friend about that he said " Either investing method could work but you wouldn't want to switch back and forth from one to another"
AIM has you buy more as a stock goes down and sell gradually as it goes up while momentum investing buys more as a stock goes up and dumps it all on a dip. They are not compatible methods.
Have fun with your research.
Toofuzzy
dear toofuzzy
I do follow a plan . And from the comments of you and other aimers and their insights I have changed how I invest. I used to dollar cost average and now i twinvest with a some elements of synchrovest .
As you know i program in Microsoft basic language aka as gwbasic.I use it to run simulation of real data to see if i can enhance returns. I am interested in how others do it. From studying what is written especially on SIG and lc insights, your own posts have been also very helpful and instructive to say the least, as well as other aim boards i have learned a lot. Tom's site has been a big help as well.
dca advanced dca twinvest and synchrovest are all refinements of one on another. The reverse dca site is another approach that might have use and refinements in enhancing our returns. If we can squeeze a percent here and a percent there while reducing risk . we will be that much ahead.
As you know from previous discussions by combining elements from various approaches one can enhance an approach. I am aware that at some point there is a diminishing return for the effort expended. But i do enjoy learning how others do it.
THANK YOU many times over for your kind hearted concern on a newby's progress. I appreciate what comments are issued by you and others and i do try to incorporate what I learn.
Thank you
Infooverload
Hi Infooverload
You do not need software. You just need to follow the formulas,
Whatever system you pick (AIM, Twinvest , Syncrovest) stick with it. The whole point in following a system is to get rid of the emotion of investing.
Toofuzzy
hi infooverload, he has a patent on his formula, on page one at the bottom you can see it.
http://www.wikipatents.com/US-Patent-7003483/system-and-method-for-optimizing-the-number-of-units-of-a-security/Page-1
Hi lc and others
I found a web site with twinvest /synchrovest type software .
the web site is reversedollarcostaverage.com . it is commercial software about $30.
do you know anything about it.
Hi, 2040,
On the main AIM board, Alton recently posted this:
BTW, has anyone ever compared AIMing to Constant Value professed by Pruveen Puri? Constant Value is the way I decided to go for individual stocks and AIM is the way for ETFs and Index Funds representing multiple equities.
to which I responded:
Hi, Alton,
I got Mr. Puri's book a few months ago. Interesting idea you've got there to use both for different investment classes. As long as you're willing to accept individual stock risk, the approach seems reasonable.
As for me I'm working a "fund of funds" if you will, 20 CEF/ETF's across various categories and types. Rather than a constant value, I use instead a constant ratio, i.e., I adjust the balances to keep each of the 20 holdings at 5% of the total value. This by adding additional money or partial selling of those with the furthest value above 5%, reinvesting the proceeds back into the laggards.
Which as a way of background, brings us here and to your post, thus:
I'm interested in aimsters plan of having mr. puri plan put into action. I don't know what question to ask but perhaps for asking about greater details. Do you use aim to make buy and sell decisions on various etf or just a percent rise. how do you deal with new money comning in to your account what would I buy the lowest performer or a new etf? Any examples you offer will be helpfull.
Mr. Puri takes what Toofuzzy would likely call a very slow AIM approach. He buys a stock at a fixed dollar amount, then re-balances to that amount once-a-year, and only if the percentage change is above or below a given rate. Also the slow rebalance rate makes any tax consequences the long-term variety. He's able to save that amount each month, so he'll research and buy a new stock each month, holding off buying new stocks only if he sees he'll need more cash to add to the existing holdings at the year-end. So, he claims in this rather slow fashion to build up a portfolio at a theoretical maximum of 12 stocks per year. He reports that one must do constant due diligence, as one wouldn't want to be holding an Enron.
For me a question is how many stocks do you want to manage this way? Follow this idea and in a decade you could have 120 to manage. Not too excessive, I suppose, but it does seem to me to be a lot of work, even if you are only executing an annual rebalance plan.
Which is where, as I mentioned above, I like my fund-of-funds and keeping the fixed percentage. I suppose I could take the idea of rebalancing to the highest value in the 20, but it seems to me that that over time would favor the most volatile funds, increasing risk, as opposed to trying to keep things more or less on an even keel.
Of course, Clive's suggestion of Harry Browne's permanent portfolio being composed of a mere four elements is about the ultimate in simplicity if you really want something to be a "no-brainer," I find that too micro for my taste and find that such misses whole groups of asset classes.
So, there's quite the range out there. The point is to find a plan that works for your situation and then follow it.
Best,
AIMster
Hi 2040
You may want to follow the discussions on the AIM board.
>>>>What fund or security do you put the cash reserve in ,in an aim account? What have other aim users done?
Is the implication of a 50% cash reserve predict a correction will happen soon.<<<<<
1) Either open an account at a discount broker to invest in ETFs or Vanguard to invest in funds.
2) Make a kist of the funds you eventually want to own
3) On the AIM site is the V-WAVE which is a good guideline as to how much cash to start an account with. With the market going up over the last year the reccomendation for cash reserve has been climbing. Cash should be left in a sweep account ( either money market or FDIC insured). It needs to be liquid and stable value.
4) A 50% cash reserve is AVERAGE. As you sell, your cash reserve will increase and you should be happy if it aproches 80% in periods like January of 2000 and October of 2007. If one of the funds you buy goes down your cash reserve will decrease as you buy more. So you want cash available to buy more as one of your funds goes down. Each fund will have its own cash reserve.
Not always
Toofuzzy
I appreciate the help.
What fund or security do you put the cash reserve in ,in an aim account? What have other aim users done?
Is the implication of a 50% cash reserve predict a correction will happen soon.
Hi 2040
Check out Tom's webste
www.aim-users.com and the link back to investorshubs AIM users board.
Don't get involved with any of the "improvements" till you understand it. Read through the book at least three times. That should give you at least some time to save up some money.
If you start AIMING with $10,000 stock and $5,000 cash in one ETF or Vanguard fund, at a 5% min trade your smallest trade is $500. If the stock went up 15% your gain is $75 on the $500 stock you sold (bigger on your unrealized gain) You really don't want to have trades smaller than that so $15,000 is the minimum amount you want to start a new account with.
So maybe you start with IVE and a few years later a new account with IWN as you save up more money.
At the present time since the market has had quite the increase you might want to start with 50% cash.
Toofuzzy
Hi one and all
you been of big help. I'm interested in aimsters plan of having mr. puri plan put into action. I don't know what question to ask but perhaps for asking about greater details. Do you use aim to make buy and sell decisions on various etf or just a percent rise. how do you deal with new money comning in
to your account what would I buy the lowest performer or a new etf?Any examples you offer will be helpfull.
To toofuzzy I started to put my weekly investment into a cash reserve to build up a reasonable reserve. Will I aim or synchrovest or twinvest or try aimster's plan I'm not sure. But any of them are better than no plan and gut feeling and listening to market news casters on tv.
to lost cowboy you have loads of information.Your board is very interesting.
Hi 2040
AIM takes the market cycles to work so it is a get rich slow method that reduces risk. You have already found out how getting rich fast works (or doesn't).
The one risk with AIM is individual stocks so stick with ETFs or Vanguard funds.
For instance
IVE, IWN, EFA, ICF
Toofuzzy
I am dollar cost averaging for five years. I noticed that my weekly contributions don't have much of an effect on lowering my cost. I use balanced part stock part bond funds.I have enough to aim but my mutual funds aint volatile.I dont think synchrovest will help at this point.Not sure what to do. Is there a system for low volatile funds and stocks?
I did many things wrong In late 90's I was led to the slaughter investing in techs I used my 401-k to finance my kids education .now i'm re starting and have some retirement amount but not enough for any means of comfortable secure retirement.
Hi 2040forsight, first well done on buying both books. What I like about Lichello's books is, when ever I read them it gets my inventive juices flowing. About combining AIM and Synchrovest, as far as I know there is no software that does that. If you are femailar with EXCEL or openoffice Calc, you can try to build a spreadsheet. There is a free AIM spreadsheet here.
http://www.aim-users.com/aimware.htm
I bought at borders book store the aim book. a month later I bought the synchrovestbook at amazon book. Is there any way the two can be unified.Is there software that does this.
I'm not sure the reason for your emphasis on unifying two algorithms that work pretty well independently of each other. There is no "holy grail," though they come, year after year, system after system, trying to find it.
Any investing system, really, is an attempt to solve the problem of "how do I make money in the stock market?" As you've noticed, there are as many systems as there are people trying to invest, and methinks quite a few who make more of their money by selling newsletters and the like telling you how to invest than they do by actually investing themselves!
With that caveat in place, we can then start to look at options (not investing in stock options, a whole different kettle of fish altogether!).
Elements of the problem are simple enough:
1) we start with x$ in cash to invest
2) we want to get a return on our investment, in theory through riding the efficient frontiers of growth, dividend appreciation and volatility capture.
3) we want to also be mindful of that other more traditional expression of the efficient frontier, i.e., to get the maximum return for the least risk.
4) unless we want to get into the more esoteric realms of selling short, if we're going to take long positions we ideally want to buy low, and sell high.
5) keeping a portion in cash, rather than going all-in in one shot allows us to adjust the position(s) for optimum performance, instead of nervously waiting for the now falling stock to find a bottom, much less move up to paths of glorious return far above our initial entry point.
We can, of course, continue to expand that list, and it may be a good idea to do so if for no other reason as to give us some reminders of what the basic goals are as we look to either directly implement or adapt trading systems from others to a use suitable for our own circumstances.
The advantage we have is that we can draw on the wisdom (or fallacy) of many of the investors who've gone before us, thinking out systems and seeing how close their ideas come to ours and whether we can take these and run with them as they are, or adapt them as a starting point.
Obviously your requirements of being a periodic saver make effective use of an ongoing cash stream a main concern. You don't want to put more in than necessary, only to see the price crater next week - if you'd only waited!
To differentiate:
AIM acts as a closed-loop system, primarily acting on volatility capture to best buy-and-hold. Thus, it needs rather volatile stocks to drive its engine. Synchrovest is a cash-delaying mechanism, allowing you to grow a holding, but optimized to invest more when the price is lower, less when the price is higher.
Another option outside of these is either a constant value plan as Praveen Puri's written of, where one is always taking on new positions, or my own adaptation of same toward a constant ratio plan where one makes periodic investments in the same holdings, usually by adding additional cash to the smallest of the positions and keeping the lot at an even ratio toward each other. In other words, if I had ten holdings I'd keep each at 10% if one wanted to equally distribute the risk. This works better for funds or ETF's as it keeps you from "betting the farm" on a single stock.
I could continue, but you probably get the idea. If you've any more points on this, do feel free to ask!
Best,
AIMster
Hi 2040
Sycrovest is used when you don't have the lump sum to start an AIM account. When it grows big enough you can switch it to AIM.
My own personal feeling is that if you don't have enough to start an AIM account then you should be creating an emergency saving account in a Money Market fund first.
Toofuzzy
I bought at borders book store the aim book. a month later I bought the synchrovestbook at amazon book. Is there any way the two can be unified.Is there software that does this. I was sent here from the aim board, I invest weekly in an IRA.
it is my understanding from Praveen Puri blog that his system is based on the constant value plan, otherwise known as the constant dollar plan. I think the main reason he references Mr. Lichello's AIM plan is to draw people to his web site.
I did get his book, for what it's worth. It speaks as much toward investing psychology as it does to an actual investing method. A main point is that he's able to add about $2,000 per month to his account, which allows for fairly continued growth. Nice when you're obviously well paid!
If his site references AIM it's because in a sense he wants his system to be considered as much of an automatic investment management system as is Lichello's AIM, sans the "extra" work of maintaining a portfolio control and other attendant calculations. A simple annual rebalancing back to a target amount of $2k per holding (only if the value's gone above or below a specific % amount, otherwise do nothing 'til next year) and it's about as automatic as one could hope for.
Will it work as well as Lichello's AIM in the long run? Who knows? But he suggests that whilst this very simple version works for him, it can become the basis of developing one's own system. Both he and TooFuzzy are in agreement that one should develop a system, then stick to it.
Best,
AIMster
Mystery solved. eric s. emory in when to sell stocks . Was a variant of constant dollar investing. Where profits were sold at a certain calendar date. When losses ocured all the cash reserve on the same calendar date the following year was reinvested. so on.
Stock market riches by praveen puri . I bought the book. It is constant dollar investing with additional contributions put into distinct shares and managed separately. so its suitable for ira's and fits into SIG realm of study.
All be well!
Results of new algorithm
twinvest synchrovest hybrid 2673
classic twinvest 2469
dca 2303
test run on lichello's 4th edition twinvest chart pages 232 233
I need it to be tested
I have a google gmail account
xxxinfo.overlxxxoaded xxxx without xs. It is gwbasic can be run on free liberty basics just basic interperter. If you wish send me an email for a copy
I rewrote the algorithm for twinvest/synchrovest hybrid program i need someone to test it before i post it.
for the programs to benefit all and be modified freely without any fears They are placed in the public domain with the restrictions that nothing is charged for them and the warning about possible errors are included so people exercise due diligence.
The second program the twinvest/synchrovest one i am trying to skim off any money that is 10% above cost. the profits are placed into a cash reserve fund to accelerate growth when the stock dips and calls for larger contributions . Then the funds are reinvested at what ever rate twinvest calls for .,
I realize there is work to correct what ever errors of logic and programming that need to be corrected.
Hi Infooverload,sorry to say my Basic programing is very rusty. Hopefully some of the others can look it over for you.
You stated one of the programs was a Twinvest/Synchrovest hybrid, could you explain the differences in english?
typo correction 614,615
140 if p=0 goto 250
correction message 615,614
alternate for own data input
120 input "new price";p
correction message 615,614
alternate for own data input
120 input "new price";p
Twinvest/synchrovest ms basic aka gwbasic program
users be aware subject to programming, logic or typo errors
Symbols
m=money installments monthly
p=initial price:or new price
tv=twinvest amount
n= shaeres owned
b=bank
e=a counter
a= action bought or sold in dollars
mo=money at risk or invested in shares
np =new price
v=value of shares owned in dollars
np=new price
Actual program code
10 clear:e=1
20 rem twinvest/synchrovest hybrid
30 rem due diligence"
40 clear
50 open"xyz" for output as #1
60 input "m";m
70 input "p";p
80 input "tv";tv
90 tv=int(tv)
100 n=m*.75/p:n=int(n*10)/10
110 b=.25*m:b=int(b*10)/10
120 read p
130 e=e+1
140 if p-0 goto 250
150 a=tv/p:a=int(aP10)/10: if -a<-m-b then a=b+m
160 b=b+m-a:b=int(b*100)/100
170 n=n+a/p
180 mo=mo+a:mo=int(mo*10)/10
190 np=p
200 v=n*np:v=int(v*1`0)/10
210 if v>1.1*mo then goto 290
220 if v<.9*mo then goto 440
230 write#!e,p,b,v,mo
240 goto 120
250 cls :print "total value ":b+v
260 print "bank ";b
270 print " number of shares ";n
280 close:end
290 b=b+(v-mo)
300 v=v-(v-mo)
310 n=n-(v-mo)/p
320 mo=mo-(v-mo)
330 goto 120
340data 8,5,4,5,8,10,8,5,4,5,8,0
440b=b-(mo-v)
450 v=v+(mo-v)
460n=n+(mo-v)/p
470mo=mo+(mo-v)
480 print "sell ";int(mo-v)/p
490 goto 120
500 rem ms dos twinvest synchrovest hybrid by infooverlad. DUE DILIGENCE PLEASE !
alternate for line 110 input"price ";p
your own data
Twinvest/synchrovest ms basic aka gwbasic program
users be aware subject to programming, logic or typo errors
Symbols
m=money installments monthly
p=initial price:or new price
tv=twinvest amount
n= shaeres owned
b=bank
e=a counter
a= action bought or sold in dollars
mo=money at risk or invested in shares
np =new price
v=value of shares owned in dollars
np=new price
Actual program code
10 clear:e=1
20 rem twinvest/synchrovest hybrid
30 rem due diligence"
40 clear
50 open"xyz" for output as #1
60 input "m";m
70 input "p";p
80 input "tv";tv
90 tv=int(tv)
100 n=m*.75/p:n=int(n*10)/10
110 b=.25*m:b=int(b*10)/10
120 read p
130 e=e+1
140 if p-0 goto 250
150 a=tv/p:a=int(aP10)/10: if -a<-m-b then a=b+m
160 b=b+m-a:b=int(b*100)/100
170 n=n+a/p
180 mo=mo+a:mo=int(mo*10)/10
190 np=p
200 v=n*np:v=int(v*1`0)/10
210 if v>1.1*mo then goto 290
220 if v<.9*mo then goto 440
230 write#!e,p,b,v,mo
240 goto 120
250 cls :print "total value ":b+v
260 print "bank ";b
270 print " number of shares ";n
280 close:end
290 b=b+(v-mo)
300 v=v-(v-mo)
310 n=n-(v-mo)/p
320 mo=mo-(v-mo)
330 goto 120
340data 8,5,4,5,8,10,8,5,4,5,8,0
440b=b-(mo-v)
450 v=v+(mo-v)
460n=n+(mo-v)/p
470mo=mo+(mo-v)
480 print "sell ";int(mo-v)/p
490 goto 120
500 rem ms dos twinvest synchrovest hybrid by infooverlad. DUE DILIGENCE PLEASE !
alternate for line 110 input"price ";p
your own data
thank you all AIMers and SIGers
warning might contain errors of programming or logic or typos
EXPLANATIONS OF SYMBOLS
ms basic program for constant value plan
M=money invested total
p=Initial price of purchase
b=bank or cash resxerve
n=number of shares
sv=stock value ,share value
a=action or amount bought or sold
z=amount devoted to stock purchase in decimals e.g. .75
np=new price
ACTUAL PROGRAM
1 rem may contain errors of programming or logic or typos . Use at own risk. entertainment purposes only.
10 input "money";M
20 input "initial price";p
30 input "z in decimals (0- 1)";z
40 rem input part
50 b=m-z*m
60 n=z*m/p
70 sv=z*m
80 input "new price"; np
90if np =0 goto 250
100 a=sv-n-*np
110 if a = 0 goto 80
120 if a >0 goto 140
130if a<0 goto 200
140 a=abs(a):if a>b then a=b
150 n=n+a/np
160 b=b-a
170print "buy shares"; a/np
180 goto 80
190END
200 a=abs(a):if n-a/np<0 then a=n*np
210 n=n-a/np
220 b=b+a
230print "sell shares";a/np
240 goto 80
250 print sv + b
260 rem constant value algorithm in ms basic by infooverload .Due diligence please
YOU CAN USE JUST BASIC FOR WINDOWS AND HOT PAW BASIC FOR MACS AND WINDOWS TO RUN IT OR OLDDOS DOWNLOAD FROM MICROSOFT TO DOWNLOAD QBASIC FOR WINDOWS
PLAY WITH AND ENJOY IT TO EXPERIMENT WITH IT AS YOU LIKE.
ps you type zero at new price -np to end program
Hi Info
If you have already checked out AIM investing there is a method called LD-AIM (low down AIM) where you do not buy all the stock you are supposed to when you first start out. So you can get twice to three times the leverage. I have mixed feelings.
Toofuzzy
Mr Praveen Puri has a web site. He has a technique of using virtual shares to enhance performance of his method. I found it and lost the web site address. You can find it by googling virtual shares stock trading riches. You might be interested in it.
Thank you for the information
Hi Infooverload, it is my understanding from Praveen Puri blog that his system is based on the constant value plan, otherwise known as the constant dollar plan. I think the main reason he references Mr. Lichello's AIM plan is to draw people to his web site. I have not read his book. If you are a member of a public library, they can likely get a copy of the book for you to read through the inter-library loan program.
In this article he talks of alternatives to dollar cost averaging.
http://ezinearticles.com/?Two-Alternatives-to-Dollar-Cost-Averaging-For-Recurring-Investment-Contributions&id=2709714 The second method is actually Mr. Lichello's Twinvest method.
Google books has a limited preview http://books.google.com/books?id=L9B5XZAca60C&dq=%22Praveen+Puri%22+system&source=gbs_navlinks_s
To lostcowboy
I came across an author who is associated through reference to Mr. Lichello, Mr. Praveen Puri. His book is "Stock Market Riches".
I am looking for a way to use general stock/fund trend as a bases for making a buy/sell decision. That decision will have statistical-probability on its side for an informed decision.
I am trying to implement a macro aim approach. Before I lay out another 18(price plus shipping plus taxes at Amazon) dollars on another book , Do you have any thoughts on this process of his. Is it another Aim variant ?. Is there any boards or posts that deal with it?
Thank you lost cowboy for your information and links to other web sites. I am interested in aim investing and especially aim rebalance . When i went to the aim rebalance links ,I saw posted a 10 year study using this new technology on classic Lichello sequence . Of about 600 times growth. However in his book when I run the numbers for ten years I get 500 times growth . Not 100 times as noted. I believe the difference is due to the fact Lichello attained a million dollars in 91 months or about 7.5 years. Where as aim rebalance used 120 months. Obviously this method is very potent what is the real difference between aim and aim rebalance. Did I make a mistake in my calculations.
To summarize
aim rebalance or ddca 120 months 5900000 about
aim classic about 91 months 1000000 about
aim classic about 120 months 4600000 about
I use basic language programs not spread sheets if that makes a difference?
Hi infooverload, first let me say that all of my spreadsheets are for testing the formulas plans, not for real investing. Also let me say that I have not been able to do any investing myself. One way to make Synchrovest more conservative would be to allow Synchrovest less access to the cash. You could have two cash accounts and when you have a sell, split the cash between the two. Let Synchrovest be only able to draw on one of the cash accounts.
I assume you have already downloaded my spreadsheets. In the Synchrovest spreadsheet, on row three are all the adjustments feel free to play with them. You will likely find B3,C3,D3,F3, and G3, all worth playing with.
Mr Lichello, started working on Synchrovest sometime after the 1968 crash/bear market. His investment in a mutual fund was in shambles. He learned the hard way that DCA alone was not the answer. One of the first things he saw was that he needed money for rainy day events, if he had been able to invest extra money in the crash he would have recovered much quicker. So he came up with his rule of investing 75%, and putting 25% away for a rainy day. He also decided to use a multiple based on average cost divided by current price. By using that when current price was below average cost, he would invest a larger amount. He was also concerned with investing as much cash as possible when the market was low. Which leads to his second investment rule, if the multiple is greater than one then subtract one from it and use the decimal part as a percentage of the cash to be added to the first formula. He also thought that by the time you had a 100% profit the bull market was likely over and it would be a good idea to sell out.
When you build your spreadsheet or (on paper) formula plan. Here are some things to think about. You could use a multiple based on several things added or multiplied together.
You could use a multiple based on your average price as you buy stock. http://books.google.com/books?id=XeaorGgYAXsC&pg=PA311&lpg=PA311&dq=accelerated+dollar+cost+averaging&source=bl&ots=HUaa_srgaO&sig=mx596IIuVuM_voR41y16WlFV0kM&hl=en&ei=7VzKSqnNGImwtgfLwoWaBQ&sa=X&oi=book_result&ct=result&resnum=1#v=onepage&q=accelerated%20dollar%20cost%20averaging&f=false
you could also use a moving average of the current price. This used to be on dripadvisor before it was sold to a new owner. http://web.archive.org/web/19991004130251/www.dripadvisor.com/calc/about.shtml
about the second formula ,the percent of cash, you don't have to use it if you don't want to. You could also change it to a real percentage, that would also change how fast you use up the cash.
Example: average cost is $10, and current price is $5. Using the old rules you get 10/5= 2 times monthly installment , plus 2-1= 1, for 100% of remaining cash.
You could change it like so. Keep the first rule, you get 10/5= 2 times monthly installment. But change the second rule to a true percent. If the multiple is greater than 1 , take (average cost- current price)/average cost, for a true percentage. you would want to get rid of the negative sign.
((5-10)/10)*-1= 50%, times cash. As you can see there are all sorts of formulas that one can use.
Last but not least here is a copy of post number 10.
Here is some more interesting stuff on DCA. In her book Practical Formulas for Successful Investing by Lucile Tomlinson, Mrs. Tomlinson has a chart that shows how long it would take for a DCA plan to reach 40% profit, the time period varied from 2 1/2 years to 10 1/2 years long, most were about 5 years long. She seemed to be recommending stopping the plan at that point, as she goes on to say that after reaching 40% the plan tended to just follow with the market. Another thing she said was that If one were to combined a DCA plan with a Constant ratio plan one could get greater profits.
I have not made a spreadsheet to test this, but I have full confidence in Mrs. Tomlinson that this would work. I feel that you will end up with greater profits than DCA, but less profits than ether (Value Averaging) or Synchrovest.
PS: I think that most of the people on http://www.bogleheads.org/ use this.
Take care,
Clifford
Twinvest and synchrovest are better than dca as i am lead to believe. Is there are program that marries twinvest more conservative nature to synchrovest more aggressive nature in selling out at a certain point. So that we can harvest the profits to be recycled into the investment at appropiate times. Thus growing faster than twinvest yet not risking as much as synchrovest in a down market. What parameters would a discreet person use to capitalize say an index fund or a bond fund that is more placid than lichellos 10,8,5,4, etc. model. As these funds are more realistic replicas of the real market than his classic 10,8,5,4,etc.numbers.
Hi Guy's I just got the word that Geocities will be closing later this year. That means if you want any of my spreadsheets you need to get them now.
Hi guys, looking at the bull and bear data. Most bears are no greater than -50% from the last high point. Most bulls go no higher than 150% to 200% from the last low point. So one could use that for setting up the hilowinvestordemo.xls spreadsheet. For those who have forgotten you can get the spreadsheet at http://www.geocities.com/lostcowboy5/Spreadsheets/ .
Again, I am interested in what you think of the spreadsheet.
Here is some info on the average gain of bull markets.
http://www.usatoday.com/money/markets/us/2005-08-09-toothless-bull-usat_x.htm
Found this also, the largest bull and bears.
http://www.frbsf.org/education/activities/drecon/answerxml.cfm?selectedurl=/2001/0102.html
Come see me at Systematic Investing group #board-966 lets talk formula plans.
How This Bear Market Compares!
I found this today, thought people should look at it.
http://www.nytimes.com/interactive/2008/10/11/business/20081011_BEAR_MARKETS.html
Hi LC
Glad to hear most of your debts are paid off. If the interest rate on the car loan is under 4 or 5% I wouldn't bother to pay it off early. But reguardless I would try to set aside an amount equal to the loan amount so you have something for the next car without getting another loan. and pay the interest to yourself.
Toofuzzy
Good to hear from you LC...I am just trying to keep from going broke.
-Don
Hi Toofuzzy, no I have no skin in the game. I did get out of credit card hell last year. But then my old used car started being very unreliable. So I went and got a loan on a new car. I decided to get a new car rather than another used car, due to the arthritis. I can't really do my own repairs anymore. Right now I am trying to pay it off as fast as possible.
Hi LC
I use AIM and LD-AIM.
On the AIM board Clive has started and interesting discussion on ladder (scale ?) trading.
Do you have any skin in the game yet?
Toofuzzy
Hello,not sure if anyone still comes here, or if anyone is still using Synchrovest in these hectic times? Tell me how things are going!
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This is off the topic of investing, but it is important to me so I am adding it here.
I was Raped in 1968 and never got any help for it. Recently I went looking and found a good web site.
MaleSurvivor If you are a male survivor of sexual abuse or know of someone. Please send them to the web site. If you are a wife or companion of a guy who was sexually abused feel free to come also, as there is a section of the site for you also.
Pandora's Aquarium If you are a female survivor of sexual abuse or know of someone. Please send them to the web site.
I need to set the record straight here, I have never invested in a stock or fund in my life. I am disabled and still is debt. If I ever get out of debt, I plan on starting some type of systematic investing plan. The goal of this board is to come up with the best plan. Which is why I have been dissecting every plan I come across. I am Interested In discussing All types of Formula Plans that involve investing new money each time period.
Here are the Formula plans that I currently know about:
Dollar Cost Averaging Please see #msg-271433 & #msg-272299 & #msg-336248
Twinvest by Robert Lichello from his book (How to make a $1,000,000 in the stock market automatically!) Please see #msg-276065
Invest% Please see #msg-276727
Value Averaging by Edleson from his book (Value Averaging) Please read #msg-277237 https://www.amazon.com/Value-Averaging-Strategy-Investment-Returns/dp/0470049774/, you can find the spreadsheets
here https://www.wiley.com/en-us/Value+Averaging%3A+The+Safe+and+Easy+Strategy+for+Higher+Investment+Returns-p-9781118044742
Synchrovest by Robert Lichello from his book (Super Power Investing) Please read #msg-309558 & #msg-277260
CASH karw came up with a plan that he calls CASH (Combined Aim Synchrovest Holding) please read #msg-281442 & #msg-283421
I am also aware of four formula plans that were designed for large amounts of money. They are:
The constant ratio plan
The variable ratio plan
The constant dollar plan
The AIM plan by Robert Lichello from his book (How to make a $1,000,000 in the stock market automatically!)
How to Improve Formula Plan Results! please read #msg-309430
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