HI Alton
I will use your USO stock to explain the PC stop rising buy method. I hope it aligns correctly.
These are actual monthly closing prices from 7/1/08 thru 5/1/09.
I hope it aligns correctly.
PRICE VALUE SAFE CASH BOT OWN CONT ADV ORD
99.99 5000 500 0 50 50 5000 0 0
92.87 4644 464 0 0 50 5000 356 0
82.01 4100 410 0 5.97 55.97 5245 900 490
55.59 3321 332 0 82.40 138.4 7535 4913 4680
42.09 5825 583 0 26.8 165.2 8098 1710 1127
33.10 5467 457 0 65.7 230.9 9185 2630 2174
29.22 6747 675 0 60.3 291.2 10066 2438 1763
27.05 7877 787 0 51.8 343 10767 2189 1402
29.05 9964 996 0 0 0 10767 802 0
28.63
36.40
By observation, you can see that the stock price and the PC are
inverse processes. The descending prices causes the PC to rise and vice-versa. Inversing the buying process will not affect the operation of the system. However, observation plus the above stock, clearly shows that it is more profitable to enter on the PC side than on the suggested BTB stock price side.
If you backtest any stock, i will bet that the PC side comes out the winner.
Now, this is the parameter that i use to enter a buy order.
When the mkt. ord causes the PC to stop rising, I will enter a buy order at that point. I will use the same amount of cash reserve that the BTB used. In other words, if the PC on USO had stop rising at $55.59,i would have bought $5,170 worth of stock if that amount was in my cash reserve.
This method is for only the buy and initial entry side.
AI
