While playing with the hilowinvestordemo.xls spreadsheet the other day. I was using the 10,8,5,4,5,8, and repeat data. I put the hi at 8 and the low at 5. I had the low ratio set at 0.0% and the hi ratio set at 100%. I was sure prized at first to see that I had doubled my profits even though I was missing both the hi and the low prices. After A little bit of thinking I realized that I was using only 8 and 5, and was investing 100% at the low, and selling 100% at the top, which gave more profit than spreading the buy and selling between 10 and 4. So I may need to think in a more nonlinear fashion. Currently hi/low investor invests in a linear fashion. It takes the (high-current price)/(high-low) price to get a percentage between 0 and 100 percent. 50% is invested in the upper half and 50% in the lower half. But what if we invest only 25% in the upper half, and 75% in the lower half? It should lead to more profits, especially if we can sell only 25% in the lower half and sell 75% in the upper half. So I am starting on a new spreadsheet, to see if I can solve the problem.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
