Never Lose Money Investment Strategy

[cjam]

Hi Ken M.

The backtest results use percentage based calculations and therefore assume that the current value of the entire holding at each time-point is used as the base.

In practice however I'd expect that starting each year at a set point (perhaps Jan 1st or financial year start) and dividing into 12 equal sized pots would have comparable overall end results as a consequence of averaging (some years would do better than the former approach whilst others would do less well).

I try to highlight that you shouldn't take the figures too literally, they are an asset management guide intended to indicate an approximation of how much exposure you should have at any one time. In a similar way to how a calculation of owning perhaps 12.5 shares cannot be practically implemented (unless there are methods of owning sub one whole units of shares that I am unaware of).

Thanks for querying Ken. Sizing my portrayal/presentation of the strategy against a fresh mind is extremely useful.

Regards.