Hi Conrad:
I see that you Buy Sell each time at 10% of the number of shares you have before the trade.
I also Buy or Sell 10% of the Stock Value each time! And this is consistent with Lichello's algorithm. Using my first Buy from our preceding example:
Stock Value = 8333
PC of 10000 - SV of 8333 = Advice of 1667
Safe = 10% of SV or 833
Advice of 1667 - Safe of 833 = Action of 834
834 Action / 8333 SV = .10 (10%)
Fact is that at whatever price; if you trade 10% of your value, you will trade 10% of your shares. The constant is the price per share.
My current set of calculations get me to the correct Stock Value that in turn gets me to the Price Threshold necessary to Buy or Sell my Minimum % with respect to Safe and consistent with Lichello's algorithm. That is all I was trying to do.
This reduction has nothing to do with the Share Prices.
Agreed. I understand the cyclic reduction. What I'd like to see is a method to determine these Stock Values such that I'd not see the 'Creeping Brackets'. This may not be possible mathematically holding other rules.
If you want a symmetric buy-sell behavior then you simply can use the Ratio Method:
Buy or Sell=(PC-SV)*Multiplier
and set PC=SV after each trade.
I don't know what the 'Multiplier' is, or how to logically arrive at its value. But it seems arbitrary. Can you explain it further?
I have played around with 'resetting' the PC after a Sell in the past, but lost that spreadsheet years ago.
Bottom line is I know without a doubt that my math is consistent with Lichello's. But, when executed at each threshold, experience this phenomena of 'Bracket Creep'. It is what it is, but doesn't set right in my mind. What this means is that my challenge is to find a way (probably via the PC adjustment rules) to get the symmetry back. Is this a mathematical impossibility? I don't accept that yet.
Thanks for taking the time.
Regards, Steve
Best Regards, Steve (The Grabber)
