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Re: karw post# 36

Saturday, 11/20/2010 7:11:22 AM

Saturday, November 20, 2010 7:11:22 AM

Post# of 289
B&H and deep divers.

On the AIM board these 2 issues popped up for a Constant Value machine(CV).
My first reaction to these issues:


I - When the investment price rises, CV will expand as well. Each CV(1,2,..n) could be selling, that sell will be added to Cash. At Cash + 10% a new CV will be opened: CV(n+1). CV can grow with the market.

II - For losing positions, a Quality indicator could be used. As soon as a CV(i) is below the Quality indicator that CV(i) could be swapped for a new instrument that is above Q.
A possibility for a Quality indicator could be P/FCF etc.

Best Regards,K

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