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


To: JZGalt who wrote (5021)7/12/1998 8:35:00 AM
From: Jim Battaglia  Read Replies (1) | Respond to of 18928
 
You have a excellent approach. You do need to take into account where the price is into relationship to its high. Years ago I developed the TVR system with AIM and Tom and I have chatted about it occassionally on the board. I do not bring it up much because it works in harmony with the Idiot Wave in looking at the "big picture", but much less calculation is needed. It was developed using a twist on the Twinvest formula. Here is how it is used: A= Current price for the fund. Let use FSESX is at 23.38. B= multipler code (high of fund) times 50%. So let's say the high was 35.00. C= B/A*100 (B divided by current fund price. D= results of C which is your Equity positon now if you buy. So lets apply:

code is 1750 (35.00 high times 50)

1750/23.38= 75%

Therefore 75% equity and 25% cash would be the ideal entry point. The TVR was formualted to assist in determining how much money is needed to hold in cash when making your first purhase. It is correlated with the rise and fall of the DOW or FUND/STOCK. It will cut back on your inital purchase when the stock/fund is high and will purchase more initial funds when the stock/fund is falling.

Hope this helps
Jim

investnbest.netmegs.com