InvestorsHub Logo
Followers 21
Posts 3695
Boards Moderated 1
Alias Born 01/30/2002

Re: OldAIMGuy post# 46218

Tuesday, 10/25/2022 7:23:14 AM

Tuesday, October 25, 2022 7:23:14 AM

Post# of 47133
Hi Tom

0 Safe and Sell/Buy settings of 9.09 & 11.11

These are from Don Carlson's 'Magic Formula'!

I searched the board for the context of the conversation around these, but didn't find it. Maybe it was on the old board.

These 2 above effect a 10% Price Move either side.
Divide each by 2 for Split Safe/Minimum approaches.

I dug out my old spreadsheet for the actual formulas.
I think reciprocals are involved.

(The PM% defines Price Movement)

Buy Side
=(1/(1-PM%))-1
Sell Side
=1-(1/(1+PM%))

Best Regards, Steve (The Grabber)

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.