Hi Rico,
We appear to sit on one line with respect to the idea that the 50% Pc-Update is not a sacrosanct number. Various people already play with that. As to your observation that with a 100% PC-Update you get a Buy Order right away this is true but with a 50 % or 30% Update there is also immediately(at the same share price) a Buy Signal of the magnitude (PC-Y), and this is half of the magnitude of the previous Buy.
This "flaw" is not in principle a big problem although an irritating feature as the investor must tell himself not to act on this Buy Signal. The important thing is however that with the 50% Buy signal many AIMers feel that the Buy Order that results from it is still too aggressive! This is my reason therefore to make the PC update-percentage a free programmable constant. More interesting is the fact the in my PC-Update I get as result PC=Y for the case that the Buy or Sell is executed according to the formal calculation for the Buy Order. Outside of this range, thus when the factually executed Buy Order is larger or smaller than the calculated Buy Order I use a method for updating the Portfolio condition so that the end-condition of the portfolio is exactly as the investor wants it to be. These matters are used for example, for adding cash to the portfolo, or taking the cash out if my personal Cash Burn Rate as defined bij Lou Dino, is forcing me to!
In regards to the fact that Lichello has died, yes, I was aware of it. Sometimes we allude to people that have passed on as if they were still watching us. I used that writing style.
With respect to the book it is still available but I have to dig out the master copy. I am rewriting it in Dutch as well as in English.
On gambling we could perhaps set up a separate discussion. I do not gamble, except now and then for fun(Buying some AND Stock for 1 cent/share is pure fun), and sometimes in a moment of temporary insanity just to break the routine of the day-to-day-nose-to-the-grindstone routine of serious adult matters...An adult is someone that has forgotten how to be a kid. That's why I want to escape every now and then and do something I do not need to justify!
Regards,
Conrad
