Replies to post #32572 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

You'd need to use a log function Conrad i.e. if on one side the price gains 100% (2.0 gain factor) and on the other it loses 50% (0.5 gain (loss) factor) then log(2) = 0.3 and log(0.5)= -0.3

This is the exact same basis as to why my Ladder method is founded on a log stochastic scaling.

i.e. having identified appropriate TOP and BOTTOM prices at which the account moves all OUT or all IN, then the current weighting is determined by either

(log(current)-log(bottom))/(log(top)-log(bottom))

or

1 - ( (log(current)-log(bottom))/(log(top)-log(bottom)) )

depending upon the choice of application i.e. if using price or yields etc.

[Toofuzzy]

Hi Conrad

Only a currency collapse in the country you are AIMing (X). Think Mexico or one of the South American countries a while back.

Toofuzzy