A.I.M. Users Bulletin Board

[Conrad]

Hi All (Again)

In the previous message I posted an example but that was screwed up on account of text editing problems. I have extracted the table of data. Here it is:


Example with equal percentage drop 20% for each Buy Trigger
(Using pencil & Paper):

Lichello Safe =0,1 Vortex

pc= 1000 y=1000 pc= 1000 y= 1000 F=1/(1-f)
y2=800 y2=800
Del= 200=Advice Del=200
Buy=1000-800*(0,1+1)
Buy=1000-880=120 Buy=120=F*(1000-800)-->F=0,6-->f=-2/3
y3=800+120=20 y3=800+120=920
pc2=1000+1/2(120) pc2=pc1-2/3(120)=1000-80=920
pc2=1060 pc2=y3 Always!!

It is now obvious that from here on the buys will diverge:
Price Drop 20%

2% At 920 20% At 920
y2=736 y2=736
Del=184 Del=184
Buy=1060-810=250 Buy=0,6*184=110
y3=736+250=986 y3=736+110=846
pc2=1060+1/2(250) pc2=y3
pc2=1185 pc2=846

Price drop 20%
@ 986 @ 846
y2=789...Del=199 y2=677...Del=169
Buy=1185-868=317 Buy=0,6*169=101
y3=1106 pc2= 1344 y3=947 pc2= 947

With this my point is more clearly presented.

Conrad