Fool, no way!
Synchrovest in a nutshell.
Take what ever money you were planing to invest using DCA(Dollar Cost Averaging) and split it up into two parts. One part to be invested right away, and the other part to be held in reserve for Bargain Basement sale days, while rare they are always worth it.
Mr Lichello said invest 75% times his multiplier right away, and put the rest away for a later day.
Average cost per share= Total cost/Total number of shares.
How to get multiplier take your (average cost)/(current price)
If the multiplier is less than 1 you only do one step.
Example one: you have $100 to invest, your last average cost per share is $6, and current share price is $8. 6/8=.75
Calculation is $100*.75*.75= $56.25 That's how much you invest, the rest is saved for another day.
If the multiplier is larger than 1 you have two steps to do.
Example two: you have $100 to invest, your average cost per share is $10 and the current share price is $8. 10/8=1.25
Calculation is $100*.75* 1.25= $93.75, plus step two
Step two is multiplier minus one times the reserve money, the reserve money could be only $100, or it could be a few thousand. so in this case you are investing one quarter of your reserve. Important to note my Lichello says do not invest more than half your reserve at a time, so if your multiplier is at 1.75 you only use .5 times your reserves.
Note if you feel Synchrovest is to aggressive you could subtract more than one from the multiplier. So you could have 1.25 minus 1.1 giving you .15 times your reserves.
The last thing is when to sell, in the book Mr Lichello says to sell when you get a profit of 100%, I think a better percent is 50% but that is up to you. In this book Mr. Lichello felt that by the time you got to a sell trigger the market was due to fall, so he advised to sell all and start a new.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
