Systematic Investing Group

[lostcowboy]

Hi all here is my thinking, there ar several ways of over coming the downfalls of DCA. one is to combined DCA with a constant ratio plan (now called asset alocation). Growth DCA, which uses not one but two growth rates, to increace the periodic amount. Value Averaging which uses the same formula as Growth DCA, but adds the rule of selling or buying enough stock to return to the value path generated by the two growth rates. In his spreadsheets Michael E. Edleson also adds the ability of having a starting value. Here is the best web page for explaning Value Averaging. Here is where you can get Michael E. Edleson's Spreadsheets.

As far as I know Synchrovest is the only formula that makes use of the average cost per share. But it does not have any adjustments for inflation or market growth.

I have not built any spreadsheets yet but I beleive that both value averaging and Synchrovest can be improved by combinding some of the rules of each.

I am thinking that we need to lay down the logic rules and then build some public domain spreadsheets, maybe on google doc's. All input is welcome.