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Conrad

06/08/10 11:01 PM

#31961 RE: lostcowboy #31955

Pyramid investing.
Interesting link. I have been reading up on it and concluded that it is "simply" an alternative way to structure the buys and sells in a generically similar fashion as the Ladder Systems Clive (Is7550) described and essentially is uses the same principle as some of my suggestions (and the suggestions of Don Carlson)in the past for accelerating the buys and sells as the prices move away from the mid-position of a trading range. . .effectively optimizing yield.

On these schemes the question if one system is better than another can only be answered in terns of specific price structures and parameter settings. Even you optimize two such systems you will not get hard answers unless you optimize in an identical way(if that is possible). In such cases usually one system would "win". Should you then use these optimize "settings" with different price structures the yield results may be very, very different, even possibly resulting in a loss for one and a gain for the other. The extra complexities also require more time for getting such a systems to work and to manage, often not creating the expected payoffs for the extra work.
This is not my own wisdom but I have come to that conclusion from the collective experience of others in this field.

So the Pyramid system may well beat some AIM Ladder System but also the opposite may be possible.

Toofuzzy

06/08/10 11:08 PM

#31962 RE: lostcowboy #31955

Hi Lostcowboy

I couldn't find exactly how he is scaling his investments but it sure looks like ladering to me.

Toofuzzy