Replies to post #38962 on A.I.M. Users Bulletin Board (AIMUSERS)

[The Grabber]

Hi Tom.

Newport is BTB in its calculating engine.

I apologize if I mistated that Newport uses %PC instead of %SV.

It's only the Minimums and the SAFE that can vary from BTB. (in Newport SAFE is called Resistance).

How does it vary?
When I reverse engineered Lichello's formula, the toughest part (for me anyway) was figuring out how to accomodate for Minimum $ and the impact that had on Safe.
I chose to generate 'Initial Values' for Stock Value, Advice, Safe and Action amounts, then by comparing that to the Minimum $, adjust Advice and Safe to derive Final Stock Value, Safe and Action amounts. Dividing thae Final Stock Value by # Shares owned gets to the Limit price per share. Dividing the Final Action $ by the Limit Price derives the # Shares to Sell or Buy.

[SFSecurity]

Thanks Tom for connecting it to the amount needed to recoup a loss. I hadn't thought of it that way. It sort of makes sense in that that approach makes for smaller moves on the buy side so one can accumulate more shares. And it makes sense in that, historically, things go up more than they go down, if you have patience.

So it would also make sense that the sell side waits a bit more before executing to take advantage of the overall trend in pricing.

Best to you and yours,

Allen