Systematic Investing Group

[lostcowboy]

Hi 1Step, sorry about not getting back to you sooner. I have been to that site "moneytology" in 2010 I believe, I did suggest that he check out Synchrovest. I did not see any response.

Here is my opinion of DCA and what can be done to improve it, From post 10.

In her book Practical Formulas for Successful Investing by Lucile Tomlinson, Mrs. Tomlinson has a chart that shows how long it would take for a DCA plan to reach 40% profit, the time period varied from 2 1/2 years to 10 1/2 years long, most were about 5 years long. She seemed to be recommending stopping the plan at that point, as she goes on to say that after reaching 40% the plan tended to just follow with the market. Another thing she said was that If one were to combined a DCA plan with a Constant ratio plan one could get greater profits.
In other words later in a DCA plan it becomes noneffective.
Michael Edleson, In his book Value Averaging also felt that DCA becomes noneffective for long term investing. He came up with two plans in his book, one called growth DCA and the other called Value Averaging.

About Twinvest, Mr Lichello added the chapter on Twinvest in the second edition of his AIM book, why did he not just add a chapter on Synchrovest? I think it had to do with copyright law, book contracts, and the fact that he used two different publishing companies.

It is my feeling that the different investing methods preform in this order, from lest to most.
DCA
Twinvest
DCA plan with a Constant ratio plan
Value Averaging
Synchrovest with selling set at 100% profit, Lichello's original setting.
Synchrovest with selling set at 50% profit, I got the Ideal of reducing the selling setting from Mrs. Tomlinson's 40% sell setting.

When using the AIM data set from the AIM book, 10, 8, 5,4, 5, 8, 10, 8, 5, 4, 8, and repeat. Synchrovest with sell set at 50% quickly pulls away from all other investing methods. this is due to two things Synchrovest always sells all stock, so it has very few stocks at risk during the start of the next bear market. Also Synchrovest has a very aggressive buying policy during the market crashes.