Systematic Investing Group

[lostcowboy]

Hi Karw I see the idea's are flowing! I love to see Idea's

You can also use (d6-0.95) and add in second gear (d6-0.95)*M5.
You buy more with a trigger point below 1 and less with a trigger point above 1 when compared to the standard trigger point of 1.00.

From this my understanding of you Idea is, what ever I use as a trigger should be used in the second gear Calculation.
In my opinion we should subtract 1 or greater than 1, never less than one.

Here is my thinking on it, the multiplier is Average cost divided by Stock Price. If the multiplier is less than one then the stock price is above average cost, we want to add less money rather more at this point. So I think the trigger point must be 1, or greater than 1.

What about in the Second gear calculation? In my opinion, we have more of a problem of investing to much too soon. AS we are using our whole cash reserve, we can have massive inflows of cash into the stock, once the stock price has dropped 50% we will be out of cash.
The half way to the wall solution does help but not enough.
I like the idea of using 1.05 in the second gear Calculation.