Replies to post #364 on Systematic Investing Group (SIG)

[leapyear92]

Hey LC,

Once again you astound me!

Anyhow, if it is based on %R it is hardly new. I discussed that idea back in the 1999-2000 days on the SI board. Problem was and still is the drawdown or deep diver.

After all these years I still feel that a simple MA or MA of the equity curve is the best way to bail.

I even talked about using bullish % from the PnF charts as a way of scaling in.

Your Pal,

Leap

[lostcowboy]

Hi all, both of the previous posts on Incwave, talked about the way the comparisons were made. The way Incwave is designed now it will generate cash(maybe a lot), but the only way it will reinvest this cash is if you manually increase the (Stock Limit Value). As most everyone knows, the AIM formula increases the Portfolio Control Value after each buy, but it can use up all the money before the stock bottoms out. We could do that with Incwave's Stock Limit Value, but the same thing could happen. To me the way to go would be to increase Stock Limit Value by a percentage of the profit from a sell. There should be a place in the software for the clients tax (rate/rates), the money to cover that would be removed from the profits, and the rest would be available to be used, based on the percentage the client wants to use.