For what it's worth, I've been looking into using Praveen's system in a tax-favored environment but with a daily, rather than annual checking. I've found so far that it is quite easy to have a position that overall is at a loss, but from which one can return profit, simply by buying on a dip of 10% and then selling again on a profit of 10%. Using folioinvesting negates an transaction charge so there's no commission overhead. It may be possible to make several round-trips like this over the course of a year. Of course, the initial holding may start to recover, in which case I'll take the profit along with the uptrend. I can then recycle the money back into other positions going down, or if sufficient cash pool reserves are created, add additional holdings to the system.
All in all, quite pleased with the core position methodology and simplicity.
