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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (8551)	9/18/1999 9:43:00 PM
From: HighTech	Read Replies (1) \| Respond to of 18928

Keith: Thank you for your funny post about the hair and Joe Cocker, who, among others, sang I get by with a little help from my friends. You said: >>>Although I believe you are correct in thinking that your portfolio control would not be adjusted on the sell, it still raises the bar for both buy & sell and that movement creates the next buying position above $20.<<< With all due respect, I think you may be wrong about this. The steps in the book state that each period determine (1) stock value (and put a "s" next to it)- then (2) look at portfolio control and put a "p" next to it. The larger number goes on top. "p" stands for purchase and "s" stands for sell so the only way a stock can be purchased is if "p"(portfolio control) is greater than "s"(stock value). Then the "safe" is used and must be smaller than the difference between "s" and "p" to determine how much should be bought or sold (but again "p"-portfolio control" - must be greater than "s" the stock value for a purchase to be triggered) The only way PC can be increased is when a purchase is made but this never happened in my example because the original PC ($20) was never greater than the stock value due to the stock price never falling below the original cost. Am I missing something here?? So, again I ask respectfully what can be done(in a systematic way that has been backtested for accuracy) to assure that some buying can take place (as it should in my view) when the stock pulls back to but not below the PC? I suggested, and still think it is perhaps a good idea, to adjust the PC a certain percentage upward to avoid this dilemma. You said above(referring to my example) the bar would have been raised for both buy and sell and that it would create the next buying position above $20. How so?? I apologize if I am misunderstanding your explanation. As a newbie, I will be prone to asking questions that may be quite annoying. But when the light of truth finally sets in for me, I will be silent. Yours, HiTech