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Re: OldAIMGuy post# 30169

Thursday, 05/21/2009 5:02:33 PM

Thursday, May 21, 2009 5:02:33 PM

Post# of 47151
Thanks Tom

If we have lots of small gains or a few big gains they could add up to the same total gain. What I attempted to show was that there is generally a "sweet spot" where cycles x LIFO gain is better than other combinations.

Generally they do add up to the same totals overall, and any sweet spots that historically occurred often don't hold in the forward time direction.

It's a Brownian Motion type principle. For example if I am blindfolded at the centre of a circle of radius 10 steps then on average taking random direction steps it will take 10*10 steps (100) such random direction steps to step outside of the circle. Similar effects hold throughout nature and explain why a photon travelling from the centre of the Sun takes thousands of years to break-free of the Sun (bumps around alot as it encounters other photons), but then only takes a 8.3 mins in order to reach the Earth (bumps around a lot less).

As you say on average it's just a case of fewer bigger gains or more frequent smaller gains with both generally being equal in total terms overall, but actuals vary around that so if you tune correctly the benefits can be enhanced. Equally though get it wrong and you might get worse results.

Best regards.
Clive.

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