Replies to post #42643 on A.I.M. Users Bulletin Board (AIMUSERS)

[lostcowboy]

Hi Clive,
In the spreadsheet you have a fixed high ratio and a fixed low ratio and in between you have a variable ratio which is calculated close to your formula but no log in it. I think I said William%R in the comment but no negative value. The variable ratio is basically a linear function between 0 and 100 which is then adjusted to fit between the two fixed ratios. In the spreadsheet I am using a manually determined high number, for high risk, where you would be at the low stock ratio. So if in your opinion even though the current price was high, you have determined that the risk is normal or low then you could make the high number double the current price or what ever, and the same with the low number.

One change I think needs to be done to the spreadsheet is to allow the user to change the fixed percentages as he goes down the spreadsheet. These need to be able to changed based on age, and how much risk a person thinks he can handle.

The second half of your message I will have to think on and get back to you on. But the simple answer is if one invests 100% and never sells then one has no way to take advantage of severe dips and bear markets when they happen.