Improvements to Synchrovest:
Use Michael E. Edleson's, Growth DCA spreadsheet to come up with the periodic installments for Synchrovest.
Something I am also thinking about is that total money invested should be adjusted for inflation. This should cause a upward bias to average cost, which should keep you from selling out to fast.
If inflation is 5%, $100 at the beginning of the year will only be worth $95, that means your $100 has to increase to $105 to keep the same earning power. So it makes since to adjust Synchrovest for inflation.
Another thing to think about is when Synchrovest makes a sell, instead of selling all stock, only selling of the profit. Most people don't like the ideal of selling all the stock.
Improvements to Value averaging:
Use both of Michael E. Edleson's spreadsheets, Growth DCA and Value averaging.
Use Robert Lichello's ideal of starting out putting 75% in stock 25% in cash and adjusting as the market demands. use Robert's Ideal of a multiplier, Value Path divided by stock value. This multiplier would be used with the periodic investment from the growth DCA spreadsheet.
You would also want to keep track of average cost, adjusted for inflation. If stock price dips below average cost, that's when you want to bring share value back to the value path.
About selling stock, I do not recommend selling stock if the stock price is below average cost, even if the share value is above the value path. I think it would be better to wait until the stock price is X% above average cost before selling off stock to bring the share value back in line with the value path.
Also once stock price has recovered to average cost, it may be a good ideal to increase the value path to be equal to total cost.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
