Replies to post #28 on AIM RE-bal

[2mc]

Hi K, good to see you applying yourself. Good work. Question: What's the weighted average? I gather you aren't using LIFO. And, your 'actual cost' - is it LIFO, FIFO, or average?

Regarding your formula, I'll need to look at it. I'll need to derive it mathematically. I'll give it a looksee. But, my first reaction is that what is done to the buy should be done to the sell. You know, "what's good for the goose is good for the gander." :-)

Keep up the good work.

Matt

[2mc]

Hi K, I had to rewrite your formula in the following way to understand it better:

ACPS = average cost per share
CP = current price

buy factor = (1 - CP / ACPS)

sell factor = [(CP/ACPS - 1) * ACPS^2] / CP^2

Is this a faithful translation?

Matt

[JingLarry]

Matt & Karw - I am a little confused. I am trying to work out your system. For example, let's say the following:

Cash: $100
Stock: XYZ
Cost: $10
#Shares: 10
Current Price: $8

Let me know if this is correct:

Buy Factor: 1-($8/$10) = .20
Buy Amount: $100*.20 = $20

So would you then buy 2 shares or is there some kind of SAFE system being used?