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Improvements to Synchrovest:
Use Michael E. Edleson's, Growth DCA spreadsheet to come up with the periodic installments for Synchrovest.
Something I am also thinking about is that total money invested should be adjusted for inflation. This should cause a upward bias to average cost, which should keep you from selling out to fast.
If inflation is 5%, $100 at the beginning of the year will only be worth $95, that means your $100 has to increase to $105 to keep the same earning power. So it makes since to adjust Synchrovest for inflation.
Another thing to think about is when Synchrovest makes a sell, instead of selling all stock, only selling of the profit. Most people don't like the ideal of selling all the stock.
Improvements to Value averaging:
Use both of Michael E. Edleson's spreadsheets, Growth DCA and Value averaging.
Use Robert Lichello's ideal of starting out putting 75% in stock 25% in cash and adjusting as the market demands. use Robert's Ideal of a multiplier, Value Path divided by stock value. This multiplier would be used with the periodic investment from the growth DCA spreadsheet.
You would also want to keep track of average cost, adjusted for inflation. If stock price dips below average cost, that's when you want to bring share value back to the value path.
About selling stock, I do not recommend selling stock if the stock price is below average cost, even if the share value is above the value path. I think it would be better to wait until the stock price is X% above average cost before selling off stock to bring the share value back in line with the value path.
Also once stock price has recovered to average cost, it may be a good ideal to increase the value path to be equal to total cost.
Hi all here is my thinking, there ar several ways of over coming the downfalls of DCA. one is to combined DCA with a constant ratio plan (now called asset alocation). Growth DCA, which uses not one but two growth rates, to increace the periodic amount. Value Averaging which uses the same formula as Growth DCA, but adds the rule of selling or buying enough stock to return to the value path generated by the two growth rates. In his spreadsheets Michael E. Edleson also adds the ability of having a starting value. Here is the best web page for explaning Value Averaging. Here is where you can get Michael E. Edleson's Spreadsheets.
As far as I know Synchrovest is the only formula that makes use of the average cost per share. But it does not have any adjustments for inflation or market growth.
I have not built any spreadsheets yet but I beleive that both value averaging and Synchrovest can be improved by combinding some of the rules of each.
I am thinking that we need to lay down the logic rules and then build some public domain spreadsheets, maybe on google doc's. All input is welcome.
OK So what if you figured out you need %50,000 / year in todays dollars and could count on being able to take out 5% / year safely. So if you had $1,000,000 you could retire today.
So you want to retire in 20 years so you take that $1 million and adjust it for 3% inflation compounded so for arguments sake lets say that is $2 million
So assume you can make 10% return on average, take what you have now and compounded by 10% then subtract that from the $2 million.
So lets say you still need to accumulate another $1 million So you figure out what you need to save / year to get to $1 million. Lets say that is $18,000 / year ($18,000 x 1.1 + $18,000 each year)
Finally I get to the meat of this post.
You can track where you want to be to be in savings. If you get ahead you can put the excess in cash or a bond fund and if you get behind you can take some money from the cash side to get back on track. This will automatically have you adding more cash at lower stock prices and lightening up when prices are higher.
Pretty much the Value Averaging method.
Toofuzzy
Hi Lostcowboy
I think with Value Averaging There are sells when the security out performs its planned performance.
I also think he increases the contribution amount to pace inflation.
Synchrovest in 2nd gear would increase purchases in two ways. Once a full sale is made of all securities, the proportion of buys when price is below cost of shares increases also. I forgot at what point one also goes from 3/4 of monthly contribution to 100% of monthly installments. I'll have to find the book again for the exact point of increasing the amount
I've thought a lot about variants of dollar cost averaging. I think synchrovest 1st gear is probably the middle path. I think liquidation and restarting the program should be at 40% profit. The amount you quoted Ms, Tomlinson.
I'm glad your board is still active as I enjoy exploring your posts . I find them very educational.
I was wondering if anyone has had any thoughts on combining Synchrovest and Value averaging?
>>>>> for the long term DCA investor what usually happens is, in the bear market the price will plunge below the average cost which causes the investor to panic and sell out at or near the market bottom<<<<<
Well if you don't follow the plan, you can't blame the plan.
That is like saying airplanes are no good because I am not willing to fill them up with fuel when I am at 40,000 feet and then they crash.
Toofuzzy
Long term Dollar Cost Averaging!
Are there any problems with long term DCA? Most people have seen these web pages that talk about lump sum VA short term DCA. They usally say it is best to invest lump sum, then they go on to say if you are investing periodically long term that's the best you can do. Their reasoning for this is the stock market moves in a random fashion with a positive bias. Now to me it seems that while the stock market does move randomly, it sometimes has a positive bias, and sometimes a negative bias. Corresponding to Bull markets and Bear markets. Normally Bull markets last longer and have more gain than Bear markets. While most people would say this is good, for the long term DCA investor what usually happens is, in the bear market the price will plunge below the average cost which causes the investor to panic and sell out at or near the market bottom.
Hi Tom, actually I meant that my forum has been quite for to long.
Hi LC, Re: Quiet Periods......................
In some ways the quiet is nice but in others it seems strange. 2012 has been an okay year so far and 2011 wasn't that bad (or 2010, etc.). But, it appears that the individual investor's (ii's) confidence has been severely damaged. That plus a contentious election coming this Fall and ii's are just staying away.
That lack of enthusiasm seems to pour over here to these boards. I was just reviewing my college fraternity's alumni investments and found that the account is up about 6-7% for the YTD but just about flat for the Year over Year. At 3 years it is up substantially but flat at the 5 year count. Going back to 9/11/01 the account's value is up around 118%. So, if one is looking at the 1 year and 5 year time frames, there's not much to be excited about.
That account isn't particularly big, so contains just one growth component and one income component. Each is maintained with AIM individually. When and if I get comments back from the other alumni, they usually congratulate me. So, maybe the account is doing okay compared to their own personal accounts.
I saw on the computer news this AM that an Iowa commodities and currency firm is in deep trouble (missing some $220MM) and has frozen accounts while they sort things out. This sort of news isn't anything that is going to help ii's attitude toward the market place.
You've been around for quite a while, so probably remember other quiet times. Usually they occur when the markets are stinky, but this time it appears to be more a case of disinterest. As we know, "This, too, shall change."
Best regards, Tom
Sure is quite around here. Wish I could say I had a brand new strategy, but I don't. Anyway I thought I would say hi. I'll try to start writing again.
Take care,
Clifford
I find Synchrovest to be the greatest thing since sliced bread! I was enamored of LD-AIM and think that it's very good too. But Synchro da best! I have worked out a plan to use it for position trading as opposed to a DCA approach and maybe this is nothing new to y'all.
For example: Investing $10k one would buy $2k to start and then each subsequent buy would be $1k times the mult and extra decimal portion of the mult. So say it would be a mult of 1.67 then it would be $1670 + $670 = $2340. I would never ever buy above the Ave Price (my cost basis) and buy only monthly and then only if it makes sense to do so.
if the stock rises straightaway I would sell at 20% (.4 times a normal sell of 50%) and start another stock.
This works very well and beats everything else I have ever tried.
All these years and I could have been doing this all along! Duh!
Just wanted to say a big thanks to Lostcowboy for your work on this and Robert Lichello of course!
Conrad, good catch. I put up the wrong link, it is fixed now.
Hi LC
I think you are trying to decipher my highlowdemo spreadsheet
Which one of these are you referring to?
*********************************************
Parent Directory 26-Feb-2002 15:52 -
dca_gainloss.xls 13-Feb-2002 19:13 63k
formula_plan_improvm..> 13-Feb-2002 19:29 2k
growth_dca.xls 13-Feb-2002 19:29 17k
synchrovest.txt 13-Feb-2002 21:38 9k
synchrovest.xls 13-Feb-2002 19:13 83k
synchrovestmessages.txt 13-Feb-2002 19:13 11k
trading.gif 25-Jun-2002 00:29 33k
twinvest.xls 13-Feb-2002 19:20 72k
twinvestnew.xls 03-Jun-2002 11:59 407k
va_readjustment.xls 13-Feb-2002 19:29 18k
vca_gainloss.xls 13-Feb-2002 19:29 94k
*******************************************
I am not specifically trying to decipher anything. I remember that with a monthly investment you had various "formula's" to calculate the SPLIT between stashing the Reserve and equity buying. . .This split is obvious is based on a fraction such 20/80 or 40/60 etc.
To me this looked like a Black Box: In goes 100 and out comes x/y based on some stock price behavior (Market Signals).
This fraction looks to me hat it can be related to the function
Buy=(PC-V)*M = X* (Monthly Investment)
and
Cash to Reserve= (100-X)* (Monthly Investment). . . .Y=(100-X).
This is sort of the basis of my idea for the Vortex PremiVest Function I had "conjured up" years ago.
I can of course create various function for M that will do just that. May be some of your split-function that are based on this Williams R% (Williams Ratio Generator=WRG) will be a better idea than an Arbitrary Vortex Ratio Generator(AVRG).
Regards,
Conrad, I think you are trying to decipher my highlowdemo spreadsheet. you can download it from the link in the header, I just now posted it. the spreadsheet is not based on AIM it is based on (William %R), %R = (Highest High - Close)/(Highest High - Lowest Low) * -100.
I did change it a bit though, I know that I used a positive 100. Also instead of going between 0 and 100 percent my formula goes between the the high and low percentages you set it up with. I think I used if statements for that. I did not come up with this idea on my own. In her book Practical Formulas for Successful Investing by Lucile Tomlinson, she talks about her compromise plan. If you can find it the book is worth reading.
Lay-Away Plans,
Hi LC, the recent communications on Vortex failure start-up in the US has led me think back on our discussion years ago on the Lay-Away Plans(LAP) that you are promoting for investors wit a small income. At the time I dived into these plans but since then have not done and "streamlining" of my understanding of them.
As I remember the essential idea was to decide on say a fixed monthly investment of say $ 100 or $ 120 per month, and just like as is done in regular AIM, top split this up into an Equity Part(EP) and a Reserve Part(RP) according to some Split Formula. The details of these split functions have escaped my memory. I understand there were a number of different LAPs you promoted.
The essential feature of these LAPS were, if I remember it correctly, that each monthly payment had a Micro AIM Investment structure. The Equity and the Cash followed a Cash Equity Ratio(CER) based on the prevailing market conditions. I try to recapture how it worked: Suppose an investor would have wanted to invest $ 20000 with 60% equity and 40% Reserve but does now have the savings to do so but can lay-away $ 120 per month from a fixed income structure and a small amount of savings, say $ 1000. He could start with 120 per month but he could also start with his savings and begin with a 1000 total investment. Let's assume for now that the basic trade function is similar as in AIM so that the Trade Functions based on share prices in some functional relationship:
Staring Point . . . (in case $1000 would be available)
Total Investment = 1000
E= 600
R= 400
Thereafter the monthly Lay-Away = LA = 120 would apply as a Micro AIM Investment.
PC= 72. . . .If one would use a 120 investment per month
E= 0,6*120 = 72
R= 0,4*120) = 48
Portfolio Statement after 1 month(assume no price change has occurred):
Equity = 600 + 72 = 672
Reserve = 400 48 = 448
Portfolio Value = 1120
Trade Functions for the monthly Lay-Away:
Buy = (PC - V)*Mb. . .Your Special Buy Function to calulate Mb(1)
Sell= (V - PC)*Ms. . .Your Special Sell Function to calulate Ms(1)
Essentially the $ 120 monthly investment is treated as a Micro AIM and each month the $ 120 Lay-Away is split up according to variable CER that is determined by price development.
Note(1)= I understand that for each LAP there is a unique Trade Function, but a buy or sell would essentially be a function in the form of
Y= ax + b . . . . .(b may be negative or positive)
OR if desirable
Y=ax^2 + b
for a more progressive trade function with price schanges "x", if that would be considered desirable.
With V the equity value after one month. . . let's say that V= 60 after a price drop and that Mb=5.
The Price Change = 12/72*100 = 16,7 %
Buy = (72 - 60)*5 = 60
The 120 monthly investment is split up as follows:
Equity in new Shares = 60
Reserve = 60
Number of Shares = 60/Price
The original investment of 600+72 after the 16,7 % price change, is now worth 560
New Portfolio Statement after 2 month
Equity = 560 + 60 = 620
Reserve = 400 + 48 + 60 = 508
Portfolio Value = 1128
**************************************
The interesting feature is here that using for each LAP a different Trade Function one gets a unique Set of Trade Functions:
Buy = (PC - V)*Mb = Yb=Fb(x). . . .x = the Equity Value Change
Sell= (V - PC)*Ms = Ys=Fs(x)
For each LAP
The interesting feature of this is that the Trade Function for each LAP has an Identical Form as the VORTEX AIM Trade Function for the linear case. The functions for the values of Mb and Ms can of course also be make non-linear if that would be desirable.
The point being here is that for the LAP applications one can easily use the Windows version of the Vortx AIMing Method, and with a small modification of the standard VORTEX Trade Function it can be tailor-made for your LAP versions instead of an Excel Spreadsheet.
Trade(buy) = (PC - V)*Mb . . .Mb & Ms to be defined per LAP
Trade(sell) = (PC - V)*Ms. . . . A negative number
The Vortex AIM program could be used for all your LAP applications.
Should this be still of interest to you we could discuss modifying the Standard Vortex AIM program to Vortex LAP versions. . .more or less in the line of our previous plan years ago, which I called at that time PremiVest.
PremiVest is still an Option for the Vortex AIM program, but it is not fully developed yet for release as the specif is LAP trading functions have not been developed. I have developed it for a typcal Vortex AIMing way. If enough interest develops we will consider making this option available for specific LAP investments.
Regards,
Conrad
http://investorshub.advfn.com/boards/board.aspx?board_id=1341
Hi LC,
Because there is buying and selling I think you have to do some type of IRR calculation to get a annualized return, just not sure of how to go about it.
Interesting that I saw your latest discussions on this.
As you may have noticed from my past remarks to Latstarter on my ROTAI Yield Percentage I might add to my earlier post that the ROTAI is identical to the IRR you refer to, although I have developed it on my own as I did not understand IRR at the time I needed it.
I use it in my Windows Vortex AIM and I have also to implemented it in my Excel spreads.
If you are interested I can explain how it works. It is similar to the ROCAR that Tom Veale has invented but not identical. . .over time the ROCAR and the ROTAI diverge. . .ROTAI being actually more accurate for the long term investments.
My spread sheets are no longer provided free of charge but I could explain to you how it works for setting up in Excel in a private message.
Regards,
Conrad
PS:
You also can use the IRR from the Excel Function Library. . .it requires some experimentation to get “the hang” of it though but that is also the case with my ROTAI.
Regards
Hi Late Starter,
Can someone tell me how to figure annualized rate of return on monthly investments like those in synchrovest.
Example: $100 a month invested for 20 years.
Total investment: $24000
Total value after 20 years: $54000
Gain: 125%
The annualized Simple Return On Investment=AROI can be calculated for any Period. Normally after that period, the next period begins with the Gain of the previous year added to the capital. . .then after 20 years it is Compounded ROI. The way you are asking it however looks to me that you want the 20 year period without annual compounding. This is:
SROI = {54000 -24000)/(24000/2)*100/20 = 12,5 % Annualized SROI
IF the 24000 investment would include de interest you have earned then the 12,5 % AROI would in fact be a Compounded Average AROI. . .=CAROI. So it all depends how you define Gain and Investment.
*The direct Gain = 30000
*On the Average your invested capital is 12000. . . .This is the amount you would have invested in 10 years, so the average investment over the 20 years is 12000(approximately as this is the simplest formula).
* In 10 years you gain would be 15000 on the average.
Of course, it is possible to be use a more refined compounded average annual ROI, if the payments per month are not always 100, and if the interest varies from year to year (which it always does).
In your example however you have constant monthly payment plan, so the formula I gave you is really the Time Averaged ROI. . . I call that ROTAI= Return On Time Averaged Investment.
In my Vortex AIM I use the ROTAI as a standard Yield Percentage for he Investment, and it is calculated at any time you open the program and works with any payment structure with variable amounts and variable periods. It even calculates-in the expenses you have made for the Investment . . .an Expense in an Investment.
If you have more question on Compounded Interest calculations just ask me. I can be found on:
http://investorshub.advfn.com/boards/board.aspx?board_id=1341
Regards,
Conrad
Hi latstarter, no its not annualized at all. ''its just a simple return. It takes the (value of the stock plus the value of cash), subtracts total amount invested, and then divides by total amount invested. Just a simple total return. Because there is buying and selling I think you have to do some type of IRR calculation to get a annualized return, just not sure of how to go about it.
Lostcowboy, is the total portfolio return on your synchrovest spreadsheet an annualized return?
Can someone tell me how to figure annualized rate of return on monthly investments like those in synchrovest.
Example: $100 a month invested for 20 years.
Total investment: $24000
Total value after 20 years: $54000
Gain: 125%
What is the annualized yearly return?
Come and get them!
Today I have been searching around, and found that (www.archive.org) was nice enough to save all my spreadsheets that I had on geocities.com. So here is the link.
http://web.archive.org/web/20091027001231/http://geocities.com/lostcowboy5/Spreadsheets/
Thanks Tom, I'll get right on it.lol
Hi Lost cowboy
Amazon has a download on formula plans called . Stock market formula plans. It is their
e reader book.format The Kindle. I don't know if there is a hard copy as well.
It is about three dollars.
Also David Dreman is coming out with a new book . He is on Tom Veale's reading list at the Aim Site.
He is a value investor with a preference for studying the performances low P/E stocks.
1step
Hi LC, A fellow attempted to contact you over on the AIM Q&A board:
Message to LostCowboy
Best regards, Tom
Hi Lostcowboy and 1 step
I'm glad your back at your SIG Board.
1step . Why don't you synchrovest in first gear. I looked at your stock"s beta . They are all low volatile low beta. Few will drop 10%. Why not use what you learned in Lichello's book and modify it to your stocks. Synchrovest uses Cost Per share. CPS is a truer metric than an arbitrary price drop. Just a suggestion.
I like you also use dca or such to invest in retirement.
Infooverload
Hi lostcowboy
Not it
1step
Hi lostcowboy
That much I know. That was where I learned about it. He mentions it came out in the 1960's. It created a stir.
When i google it I don't come up with much. At amazon , if i search Lichello's book it comes up plus a book by Owen Lewis copyrighted about 1969 or so On a wild play I purchased for about 4 dollars.
I don't know if it is the source or not of the double dollar average. Its name is doubling your money every three years on wall street or such. It is an investment book. I'll let you know once I read it if it is the source of this idea.
Thanks
1step
it was in his AIM book in the chapter about how he developed AIM.
Double dollar averaging
Hi Lostcowboy
IN what book did Robert Lichello find the information on Double dollar averaging?
I posted a similar message on the Aim board. JUst curious about it. To see if it is suitable for what I want.
Thanks
1step
Hi 1step, do feel free to post on here. Not sure that I can answer all your questions, but I'll try.
First be aware that I don't own any stock or mutual funds, and it looks like that won't change anytime soon. So I won't give out too much advice on stock picking. But I also lean towards dividend paying stock.
Hi Lostcowboy
I'm basic a value investor looking for good stocks with dividends and low fundamental ratios.
Many of these stocks fluctuate up and down burt not greatly I dollar cost average or systematicly purchase shares on a weekly bases in my IRA. I am looking for a method to maximize returns so when they the stocks fluctuate I take a profit and when they are relatively cheap I buy.
I thought of what questions such a method needs to answer. It came down to six questions
1. When to buy
2. what to buy .
3. How much to buy.
4. when to sell.
5. what to sell
6, How much to sell.
I found one system on the aim board created by a thoughtful investor called Orcroft. It met the six questions. It used aim to plan the buys and sells. However Aim is not suitable for all my stocks etc.
Thus I am looking at some sought of synchrovetyish/twinvestish system in DCA family of styles to pursue a investment program. Any recommendations or modifications will greatly be apprecisted.DCa and twinvest don't take profits but synchrovest does. Again i am looking for a direction that answers those questions.
This is what I own . MO,BP,ABBT, CL,EMR,GE,INTC,JNJ,MMM,MKC,PFE,PM,. All consumer staples in general and have dividends. This will help you get a mind set of what I prefer. Again I am open to change and appreciate any and all constructive criticism or praise. I bought most on the downturn and for their dividend in a declinig market but not at the bottom of the great recessions. Ge and PFE cut their dividends The others increase theirs at reasonable rates.
1step
PS your board is very interesting.
Hi Aimster and Toofuzzy
My goal in investing is to sleep at night have little downturn and make some progress. I converted everything into a one fund account. i'm not sorry it seems to do alright for now.
been watching the boards and posts for awhile. Right now one fund PRPFX portfolio is wwhat I use. I am going over in my mind of creating a second portfolio of a permanent portfolio type. I'm looking for a few funds or stocks to keep it simple. Where or how can I find such matches.Others on the Aim board have directed me to some sites.
You said PRPFX lacks any value stocks. How can i correct this. What stocks or funds would I use. How can I test to see if it will work. Again all this is just academic speculation. Any decisions i make is my own responsibility not others so don't be afraid to suggest.
I want to thank you and any others who led me to this passive philosophy. I remember staying awake at nights over the tech bubble rupture. I have 3 good kids two graduatted and one is finishing college.I paid for their college. I didn't have any money to invest in other a few thousand Iuse to dca in an ira.
Is there a site to check out correlation of different stocks and funds.
Did some digging and came across this one here:
http://www.assetcorrelation.com/
Another one useful for measuring risk & return (also free)
http://www.riskgrades.com
Best,
AIMster
Hello toofuzzy and aimster
manager was there from 2003. It grew 10% a year. In 2009 it was down 8%
The manager now seems to do ok. You think it would be ok to add a value type fund to round it out.
Low risk mediocre growth Plus
Is there a site to check out correlation of different stocks and funds.
PRPFX - the permanent portfolio mutual fund according to the spiel on Google finance, "The investment seeks to preserve and increase the purchasing power value of its shares over the long term. The fund invests a fixed target percentage of net assets in the following investment categories: gold, silver, Swiss franc assets such as Swiss franc denominated deposits and bonds of the federal government of Switzerland, stocks of U.S. and foreign real estate and natural resource companies, aggressive growth stocks and dollar assets such as U.S. Treasury securities and short-term corporate bonds. (emphasis added - see below)
Had you started with them in 1984, the long term performance is such:
Though they've appreciated well since 2001, and indeed have now surpassed the 2008-2009 drop, you'll note that their appreciation was somewhat retarded during the Bull market of the late 1990's, as the decline in other assets outweighed the excessive gains in stocks of that period. What they seem to be missing, from the Google description is a significant position in value stocks, which, in the long-term nature this type of fund is supposed to represent, outperform growth stocks, for the most part. I suppose it would take further research to see what their reallocation policy is, especially since they are in a few more asset classes than Harry Browne's very minimalist Permanent Portfolio model, (which I think is what TooFuzzy's referring to).
Not so sure how well AIM would handle this one, but over the long term it looked like Synchrovest or Twinvest would have done a good job with it.
Best,
AIMster
Hi 2040
The Permanant Portfolio i was talking about is something some writer came up with.
25 % in each of
Global Stock Fund
Bond Fund
Gold
Cash
Rebalance all when when any one goes to either 15% or 35%
It is supposed to be very stable as their is not a lot of correlation between the investments.
Toofuzzy
Hello toofuzzy
I appreciate the help
I began to put money into a cash reserve.
I found 2 permanent portfolios. One is a mutual fund prpfx the other is a investment style of different types of stock. did you mean that one. I also found an aim board from the uk it deals with permanent portfolios. I have schwab and t rowe price IRA's.What can I use from T.Rowe price or schwab to build a portfolio.
I'll let you know how I'm doing from time to time
Hi 2040
RE Switching to AIM
1) Put the amount you are dollar cost averaging in to a Money Market account going forward. You need to build a cash reserve.
2) AIM is safer with funds. Do you own diversified funds or individual stocks?
3) If you own individual stocks I would say sell them and switch to a fund (s) Maybe not all at once or in the same year to reduce the tax hit if in a taxable account.
4) at the present time you don't want to own a long term bond fund (interest rates will eventually go up and they can't go lower)
5) related to the Permanent Portfolio (google it) you could own
IVE (large value)
IWN (small value)
EFA (foreign )
ICF (REIT)
SHY (short term bond fund to switch to TLT when interest rates invert)
6) If you are just converting what you own to AIM then make Portfolio Control the present stock value and at the present time I would ideally start with 50% cash. Use 10% SAFE and 5% minimum trade size. I like to start accounts with a minimum of $10,000 in stock. If each of your holdings are smaller than that then consolidate them and maybe just sell some to raise the cash reserve for others.
7) If you have much less than the above would alude to then just buy one fund at a time as the cash you are saving on a regular basis allows. You will get diversified over time.
If you are an investorhub member write me privately and I can help you more personally.
Toofuzzy
Hello toofuzz
I think I will try Aim. It is a disciplined approach
How can I go from a dollar cost average style to an aim style and still add money in on a regular bases. What and how does one go from dca style to an aim style? Would I be better off with mr. puri
type like aiimster uses?
What steps do I take to go aim in my account?
Hi Tom ,Aiimster,Lostcowboy
I got a very nice reply from systematic investing. It was an Aim spreadsheet not an installment type investment spreadsheet.
portfolio pilot. When I further googled I learned he was associated with PCA aim system. Is his system a twinvest or synchrovest system?
Do you have any information ?
None directly. I think I found the same source you did, a news release dated 10 June (of what year I'm not sure) but it mentioned a "system" called "Portfolio Pilot" as running under Excel for $29.95. Apparently some people were starting to use it and sending positive feedback.
PCA and Automatic Investor are the two main AIM programs that people in the various AIM boards seem to be using the most, though there are some lesser used programs out there as well. There was a site called "incwave" that purportedly offered a similar service, though they went belly-up some time ago. Why pay someone $59/month when you can work the calculations easily enough yourself at minimal cost?
If Mr. McKinley's still with PCA, you might send him an email asking about it - he may be amenable to giving it away these days if it's otherwise "abandonedware." Let us know what you find. Likely he'll want to sell you a copy of PCA... :)
Best,
AIMster
Hi I, Bill McKinley and his partner have a software product PCA that emulates the Lichello AIM model.
I don't know if they ever produced a Twinvest or Synchrovest product.
Best regards, Tom
Hi lostcowboy
wandering the web I found a reference to another investing system circa 1998-2000 I guess.
IT was about buying high and selling low. It was by william mckinley of investing systems Inc.
it was called portfolio pilot. When I further googled I learned he was associated with PCA aim system. Is his system a twinvest or synchrovest system?
Do you have any information ?
hi Aimster
His work is patented and is pretty reasonably price.
We have synchrovest and twinvest. You can take the cost per share/recent price and square it then times it by base installment investment when selling and get a reasonably strong sell.
base investment =500 or aka installment per month
if selling shares
if prices are rising
base price or cps =10
new price is 11
11/10^2=1.21: 500*1.21 =605
..............................................................
if prices are falling and selling shares
base price =10,
new price is 9
9/10^2=.81: 500*.81=405
............................................................
Also praveen puri has a site where he usual virtual shares. You google him or his book with virtual shares as search words should turn it up. It is a more aggressive application of his investment approach
Hi 2040
IVE is a large value fund and IWN is a small value fund
If you were just starting out that would be a reasonable place before you do further diversification.
Using AIM you would have stock and cash which is a reasonable place to start.
Toofuzzy
what are the virtues of the different etfs suggested is one better than another
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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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