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


To: Jim Battaglia who wrote (5022)7/12/1998 9:34:00 AM
From: JZGalt  Read Replies (1) | Respond to of 18928
 
I guess I'm confused.

Why would changing the Buy SAFE modify the sell point in
the model? Did I twist your terms around?

I'm not using Newport software.

In the spreadsheet given to me, modifying the Buy SAFE only modifies
the point at which you make your next purchase and has nothing
to do with modifying the point at which your next sale occurs unless
the purchase modifies the Portfolio Control.

From what I can see, lowering the Buy SAFE moves the next purchase
level closer to the initial level.

I ran this test on the spreadsheet I have. Using a $20,000 initial
investment in GM at $73.875 with a 25% cash reserve and a minimum
trade of $1000. Here is what I get:

Buy Buy Sell Sell
SAFE % Price SAFE % Price
---------------------------------
10 $62.68 10 $87.56
0 $68.95 10 $87.56
-10 $76.61 10 $87.56
---------------------------------