Conrad:
SV1=PC1= 10000: P= 100; N= 100; Safe= S (Example S=500 Fixed Amount. The same for Buy and Sell). This must be so in order to get symmetry on the first Buy/Sell Options from the PC=SV start position. Resistance =R = 0,1
One of the exasperating things, considering your interesting ideas, is the way you redefine Lichello's terminology. Steve agreed that 'this is Lichello' but this isn't! Safe never is a fixed amount, it is what you call 'resistance'. So we'll keep in mind that your R is Lichello's Safe. Your S is the minimum Buy amount, I think, which you correctly refuse to put at a percentage of SV (although you also could use split minimums). Then you give a buy amount formula:
Buy Amount = { PC1-SV1( 1-R) -S}
BA=10000 - 9000 - 500 = 500
A 10% drop with a .1/10% Safe/Resistance triggers a buy? No way! The Lichello formula is:
Buy Amount = PC1-SV1( 1 + R) !!! Plus, not minus
BA=10000 - (9000+900) = 100
You subtract Share Value plus Safe * SV from PC, or, as Lichello puts it: first you subtract Share Value from Portfolio Control, and then you subtract Safe * SV from the remainder. And you buy when BA is above a certain amount, I suppose Conrad's S. Which at 500 would prohibit a buy.
Now you can redo your work, Conrad! Or show me what I missed!
Regards,
Karel
