Wednesday, March 23, 2005

What a Difference $1 Makes

core position trading,cpt,aim,automatic asset allocation,automatic investment management,Lichello,Robert Lichello,buy low sell high,stocks,stock market,exchange traded funds,etfs
A spreadsheet of Robert Lichello's "classic" 10-8-5-4-5-8-10 cycle can be downloaded through the link on the page AIM by-the-book classic buy low sell high spreadsheet study.

A modification using 10-7-5-4-5-7-10 gives nearly 50% better results over the same number of transactions, but at the expense of increased volatility and requiring ponying up additional cash during each cycle. (A "cash/total value" ratio of -4.55% near the end -- requires $27,339 to be added to a $600,821 account. The ending value, OTH, is +13.54% -- is +$196,399 cash in a $1,450,649 account.)

For a copy of the 10-7-5-4-5-7-10 spreadsheet, contact me through a contact link on one of my pages at AIM Core Position Trading.
Include "AIM spreadsheet" in your e-mail subject line.

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