Replies to post #284 on Systematic Investing Group (SIG)

[lostcowboy]

Hi leap, no not really. Here is some thoughts on the spreadsheet. First it is still similar to the old Synchrovest, but with some changes.
Sell at Percentage Profit, still sells you out of all stock, once you reach your profit margin, set this to what ever you want, somewhere between 25 and 50%. Once you have a sell, you will see that Planned Investment Divider comes in to play, the next month. Some people were concerned that if you sell all the stock and the stock keeps going up you would never get back in to the stock. What Planned Investment Divider does is divide CASH by the divider ( should be between 10 and 40) and add that to the monthly investment This is then multiplied by the Average cost Multiplier and the 200 day multiplier. this should take care of most averaging down situations. But some times you need to invest more money to average down properly, this is what the second stage is for, Second stage is based on average cost only, it does not use the 200 day MA. Also he formula is not the same as in the old Synchrovest, this is less aggressive, which means your money should last longer. I know that some people are more aggressive than me, which is what the Gain Factor is for, it only works with the second stage.
Second stage trigger determines when the second stage is allowed to be applied. Example if average cost is $10, and the stock price is $9, second stage multiplier should be around .9, if the trigger is set higher than .9, like .95, you will get a additional buy. I think it should be set around .8.
Well that is it in a nutshell.