Hi Conrad, somewhere around page 37 Lichello talks about Portfolio control and the adjustments to it. He wanted portfolio control to reflect all cash invested in stocks. but the problem with that idea was even though the price had not changed you would keep investing more money non-stop. So he changed the rule to only adding half to portfolio control. With that rule the additional investments quickly stopped. He felt it was a acceptably compromise.
A lot of formula plans have trigger points, where the don't buy or sell until the trigger points are exceeded. With (SAFE), Lichello did things a bit different from the rest. First, Safe is based on Stock value not portfolio control. Second, instead of using (safe) as just a trigger, (safe) is subtracted from the differences. This also reduces the size of any Residual Buy.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
