Hi Clive,
I like your analysis very much, very enjoyable.
The use of the Dow/Gold ratio gives a nice and easy formula:
cash% = 2.5% * D/G
Easy to check.
Using SAFE 0% and MTS $1 seem to be good choices while averaging in. I like the idea of being 100% equity at the bottom and then using B&H afterwards, just taking out your monthly wage. Paradise situation.
Assume you win the Lotto, will you start a new position, a second machine? Or combine the Lotto win with the running B&H and restart the AIM?
Another temptation would be a high D/G, will you stay in equity or move some equity to 'cash'?
Karw