Frizz B Account Talk

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Rolo wrote:
froogle_image
<-- would make a nice avatar, eeeeh? huh? eh?

This is probably more what Frizz had in mind...
fro.jpg
 
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tsptalk wrote:
This is probably more what Frizz had in mind...
fro.jpg
hahaha! From my favourite show, too!

NowFrizz has to start his fund reports with, "Good news, everyone!" heh
 
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Rolo asks

Aw, thought I had it.

Attempt #2:

You are in S now.When the δ I < 15, you will move to G. Then, say δ F > 310, you move into S or I until δ I > 45..?

I hope that is not right, because if it is, I understand it less than I thought I had. :s

Am I the only slow kid in this class? :)
___________________________________________________________________

NO, NO, NO, NO, NO, NO, NO ,NO,NO

When the F differential goes above the 310 mark, I start looking to move to the G Fund. It depends on what my gut feelings are at the time. The last time I made the change, The F fund differential was at 331 and the next day it came in at 341 and then tumbled. I made my change back to the S fund when the F fund differential hit at 283 and it hit a low of 225, but I did not worry, (yes I did, but did not make any changes). Now the F fund differential is at 293. So I am still in the S fund for now. When I am in the S fund, like I am now, is the only time I will change tothe I fund. When the I differential (I minus S) gets lower than 25, this is when I start to look to make the change to the I fund. Again, I have to watch the funds for the day, if the I fund is having a better day than the S fund, before the 12 noon deadline to make the trade, I will do so. If the I fund differential gets above the 35 point differential, I will watch the funds for the day again to see how the markets are doing.

So my plays are either full G fund, this is when the F fund differential gets above the 310 mark, and then play it by your gut feeling on how high you want it to go before you make your move to the G.

When you move to the G, I look for the low mark around 290 and then again use your gut feeling on how low you want to play it. I changed at 283 and felt good about it, but the market went down to 225. If I had waited, a bigger profit. When the market goes belly up, the F fund differential has gone into the 230-240 range almost everytime. I have been playing it safe, next time I might not and see how low I can push it. Then I will move back to the S fund or the I fund.

Moving back to the S or I fund. If the I minus the S differential is, usually lower than 25, I will move to the I fund, and if it is above the 25 differential I will move to the S fund. while I am in the S or the I fund is when I will watch the differentials of those 2 funds. If I am in the S fund and the differential goes below the 25 pt differential, again gut feeling, looking to move to the I fund, if that happens I am looking for a 35 pt differential or higher, gut feeling, has gone in the 60 to 70 pt differntial. If it goes above the 40 pt mark, I will almost, probably, maybe, should, who knows what my gut feeling is at that point, will move back tothe S fund.

Rolo, I have been working on this since November and I am still confusing myself, butI am getting closer to Utopia.SinceDecember31st, I am now up a little over 10% for the year. If I knew then what I knownow, it would be over 15%.

Frizz B.
 
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"Good news, everyone!" heh

Rolo, one more reply to you, the I fund differential has nothing to do with the move to the G fund. Only the F fund differential tells me which way to go, the G fund, the market has come close to its high and will be taking a downward spiral or the (S or the I fund), the market has hit its lows and is on the way up. The I fund differential tells me which of these funds I want to be in when the market is on its way up.

Hopes this explains it better, Frizz B.
 
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clouds.jpg


The heavens opened....the angelic voices sang... "Ahhhhhhhhhhhhhhhhhhh!"

I got it! Whoo-hoo! So simple...like one of those Magic-Eye pictures..."It's a sailboat!"

10%...sweet! My YTD is 1.82%, but I haven't done anything, 65S/35I the whole time, so that is how much your FBO helped over "buy-and-hold-and-whince".

This makes perfect sense, I dunno why I didn't see it earler. You use the F as a steady baseline to catch when the stock funds are getting ahead of themselves and ripe for a pullback.

Since the I and S are similar in premise, you use the δ I to which fund is cheaper and move into it, same play, just two choices. Or would it be three choices, counting C?

One possible strategy: While in G, you could see how low the δ S goes and move into it on the first uptick, that way you will always catch it one step higher than the absolute low instead of best-guessing the bottom when you are uncertain.

Thanks for the tutoring! (Now I can continue to update your spreadsheet with a sense of purpose, heh.)
 
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By George, I think he's got it.

No on the C fund at this point. When the stocks are going higher, the S and I outdo the C in the long run. The C catches up to the S and I when the stocks are losing, but the C is also losing, just not as much. It is your choice, your gut feeling, when you feel the differential best suits your personnal choice to change. I have been using the (F differential) 280 to 315, If I had let the 280 go lower, which it has much of the time, I would have done a lot better than the 10 % gain for the year, but again that is hindsight, monday morning quarterbacking, and that is illeagal, in this forum. What would of, could of, should of been. Only what you did counts.

For example, In my tsp.talk account, I am still 100 % S fund and waiting, I was not able to let the forum know in time that last week when the I fund differential went to 27 on May 10th, ( if I would have waited one day would of hit at 15), I was able to change my regular account to the I fund, It went to 37 on May 20th (if I had waited one day would haveswitched at 46)and I switched back to the S fund and in8business days Ipicked up a little over $1200 in my account while working between the S and I.If you see the differential in the S and I funds they are so volotile in the swings, May 18th, (19), 19th (45). 20th, (37), 21st (46), 24th (36), 25th (29), 26th (19), 27th (37) and May 28th (30). As you can tell in the switch from the S to the I fund, It is very easy to make the move and it could very well be wrong. This is why I say, if you are using these 2 funds to switch back and forth from, watch the market watch and decide that day before the 12 noon deadline.

Rolo, I hope this now works for you, and if it does you owe me lunch, I have 3 providers in my work office who now owe me lunch, that is there payment to me for letting them know when to make their moves in their TSP account. After their first 2 trades and they pick up in their funds, they get to buy pizza for my group of investors.

Frizz B.
 
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Frizz B. wrote:
Rolo, I hope this now works for you, and if it does you owe me lunch...
Sounds good to me!

I'm driving to Niagra Falls this summer...see if you are en route...only, your location is blank. :D


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To get my bearings, I put some averages on the spreadsheet. I think, maybe, using some statistical averages in there may make it self-adapting and give some intuitiveness for the gut feeling.

I got the MIN and MAX of each differential, then got the STDEV of MIN and MAX. Then I plotted the AVERAGE of the 5-day and 10-day moving average, weighing 5-day twice as heavy. The upper and lower bands try to predict the best threshold to switch funds by plotting one STDEV above and below the moving average. You can glean ahead to get your threshold range.

Jun 1st's ranges are 307-320, 116-122, 43-44 for high and 254-266, 83-88, 18-19 for low. I think mixing a rate of change in there somehow would add to its accuracy; that isn't calculated, but is illustrated with the graph by steep slopes intersecting the STDEV bands. In those cases, like now and in April, I would go two standard deviations, making the selling range 334-347.

Let me know what you think.
 
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Rolo, I could not download your message. Go ahead and send it to the Email address that Tom gave earlier, and I will take a look at it. Then I will send my excel format to you.The F fund high for the F fund you have is at 334-347, if you noticed it hit at 331 and then 341 and then tumbled. I use the high around 315 right now, it could go higher, all depends. The low of 254-266, is good, I have used the 280-290, which was OK, but the differential went to the 254-266 range almost everytime, but I was playing real safe with my trades. I felt I did not want to miss any turnaround. I did get lucky on one occation and then the bottom fell out, and it has now come back to where I am making a little. Looking to make more in the next week.

The S to I differential is real close to mine. I really start looking at the 25 range, and then if the market shows the I fund losing ground to the S fund I will make the change before the trading deadline. Again, if you see the numbers, they change quite dramatically between the S and the I funds. It could go from the 30 range to the mid-teens range and then back to the 30 range all in a 3 day period. It could really be easy to miss each day and lose your funds. The S to I changes are alot trickier thant the G to (S or I) funds. This differential usually works in a 5 to 25 day range.

I am from Portland, OR so I guess I will have to wait on that lunch. If I ever make it to the Florida Area I will get ahold of you.

Now, Here is your assignment. You need to start a Rolo's Account and Rolo's Accoount talk using my system and throwing in your calculations on your gut feelings. Start with the $100000 base as of May 31st. This will be a good test on your gut feeling, everything is in the middle of the road and which everway you pick will be a tough one. Although the market is, I believe stillgoing up since we did just have the low's. The I fundjust gained heavily on the S fund, but it is what I callbase zero for the differential, which is the30 mark. Good luck Rolo on this, and I am really looking for that one person who finally gets me. Ihave had quite a few that just do not see this.

I started thinking why the F fund is such a good differential with the S fund. The Ffund ismoney oriented, I believe, it moves up and down onGovermental bonds, I think, not sure, but it might give the perfect differential to work with, who knows, just my theory. The S and I differential, I believe is the no brainer, when the I fund goes way ahead of the S fundthe dollar is weak, that is what I hear, so now the Dollar gains in strength and the S Fund gains on the I fund. When the S fund gets to the under 25 range, now the dollars is strong and it is now time to give lose its strength and time to play the I fund. Again, just my thinking.

Thanks again Rolo, and do not leave this forum, the last person to understand me, started using the percentage theory and I haven't heard from that person since. I really do believe in this system, and if we can help other people make a good retirement, this is what make me happy. In my excell calculations I have a work sheet that if you put in you age and the amt of money you put in each month, my worksheet figures out how much money you will have at 59.5 years and anytime after that you may want to consider retiring. It also works out if you make 12%, 15%, 17%, and 20 % each year, what your earnings will be.

Good luck again Rolo and email me on my regular email.

Frizz B.
 
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Frizz B. wrote:
Rolo, I could not download your message. Go ahead and send it to the Email address that Tom gave earlier, and I will take a look at it.
Sent. The attatchment in the above post is a gif of the Excel graph...odd that it didn't show up.



Frizz B. wrote:
...if you see the numbers, they change quite dramatically between the S and the I funds. It could go from the 30 range to the mid-teens range and then back to the 30 range all in a 3 day period. It could really be easy to miss each day and lose your funds. The S to I changes are alot trickier thant the G to (S or I) funds. This differential usually works in a 5 to 25 day range.

Yes, the I δ is rather violent, heh. I think each fund needs its own parameters; I am playing with them at the moment. I think something like Bollinger bands may be better. I just have to find out how they are calculated. (heh, I really dunno know whatdahell I'm doing...I've always avoided 'math'.) I will say that playing around with this is giving me a better insight of what these various technical indicators mean.

The spreadsheet needs to be modded to calculate % return if a trade were executed when the δ crossed the threshold. I am no Excel ninja; I guess I will be buying a book. I should buy a statistics book while I am at it.

Frizz B. wrote:
I am from Portland, OR so I guess I will have to wait on that lunch. If I ever make it to the Florida Area I will get ahold of you.

Sounds good...There's a place here that has killer lobster-stuffed Mahi-Mahi.

Frizz B. wrote:
The I fundjust gained heavily on the S fund, but it is what I callbase zero for the differential, which is the30 mark.
Yes! That is why I added moving averages...to account for the broader trend, the drifting. It shows 25 in February...does that sound right? I'm using your experience to tweak the MA/StdDev.

Frizz B. wrote:
Good luck Rolo on this, and I am really looking for that one person who finally gets me. Ihave had quite a few that just do not see this.
...
Thanks again Rolo, and do not leave this forum, the last person to understand me, started using the percentage theory and I haven't heard from that person since.

hehehe...I know what you mean...most people don't know whatdahell I'm talking about most of the time.

I hate mysteries, so I was going to studyit and hound you until I got it, heh. The worst thing anyone can do to me is to call me on the telephone during the last ten minutes of the show Nero Wolfe. When I have the FBO down pat, I will ask you about your percentage theory, hehe.

Leave? No way! heh, I've been visiting this forum more than my own!

Frizz B. wrote:
I started thinking why the F fund is such a good differential with the S fund. The Ffund ismoney oriented, I believe, it moves up and down onGovermental bonds, I think, not sure, but it might give the perfect differential to work with, who knows, just my theory. The S and I differential, I believe is the no brainer, when the I fund goes way ahead of the S fundthe dollar is weak, that is what I hear, so now the Dollar gains in strength and the S Fund gains on the I fund. When the S fund gets to the under 25 range, now the dollars is strong and it is now time to give lose its strength and time to play the I fund.
I have thought about why you chose that, too, instead of the G fund or some other baseline and came to the same conclusion. Yes, F fund is high-quality bonds, whose value is inversely related to interest rates. When interest rates rise, bonds and small caps will suffer, therefore they will be in sync, or so I speculate. Plus, they may both rise/fall equally based on general economic conditions, so the F fund makes for a good baseline. The I δ is great for trading based on dollar strength, good idea.

Attached is a graph with MA(10,20,40) lines. I need to find a way to alter the bands to account for the rising/falling slopes.
 
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Rolo, asks the excelspreadsheet needs to be modded to calculate % return if a trade were executed when the δ crossed the threshold. I am no Excel ninja; I guess I will be buying a book. I should buy a statistics book while I am at it.

You can easily do that take the dollar amt that you started with and subtract that from the dollar amt that you are at the moment of the trade and divide that by the dollar amt that you started with.

Ex. you start with $100,000 May 31st and you make your trades from the S fund to the G fund back to the S fund and you are now at 102,000 you would have $102,000 - $100,000 = $2000 / $100,000 = 2% for that time period. Just make sure every time you make your trade, you need to update the excel spreadsheat so that all the shares equal to the amt. of the dollars you are getting out of.
 
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Nono, I meant for backtesting and tuning the MA envelopes. i.e. Whenever the δ crosses the envelope, Excel registers a trade. At the end of the graph, the trades are tallied and % gain produced.
 
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oh,I've tried emailing Frizz 3 times and each coming back so I'll try again today sometime.

tsptalk wrote:
Frizz B. wrote:
Frizz B. -
I just noticed that your email has been screwed up because of my emoticon code for :t. I never knew why you were adding that symbol to your address.How come you didn't bring it to my attention? :)

When you put in an email, it adds, "mailto:"in front of your address. Because my code for thumbs down was ":v", your email showed :twhere it said mailto:vbfrizzb@comcast.net.

Sorry about that!
 
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I am a #'s person myself. My question is do you have to start out with all shares equal ($$ balance) and what is the differential for the I fund. So when you say S to C differential you mean this is when you move from the S to C fund? etc....
 
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The differential is S fund times 100 - the C fund * 100. I do this so I have a full # to look at and not a decimal. 12.83 would be 1283 for the S fund and for the C fund it would be 11.84 * 100 = 1184. So 1283 - 1184 = a 199 differential
 
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Oneyoungbuck, At this time I do not play the C fund, it is either the G fund or the (S fund or the I fund). I use the (S to C) differential. just as another guide. When I move my funds,YES, I do move 100 % at all times, just my philosophy. I am in 100% S fund at this pt. I am watching the(I fund -S fund) more closely now. My range is 0 - 45, with my 30 as myzero base.Zero base is where my middle ofdifferential is located.C to F differential is 290 - 300 is my zero base, the F fund differential has gone up to 341 but usually goes in the 320's before a fall. Then is goes down to the 260 to 280's, but has gone to 225.

So, at this point, I am going to play theI fund to S fund differential, right now we are at 30, middle of the differential, both are around even today. If or in the near future, the S fund shows by the tradiing deadline, that it is outgaining the I fund by a pretty good margin, I willmove my funds to the I fund at that point. I am now able to get online at work, so hopefully I will be able to update before the deadline, if not you will just have to believe me if I make myswitches in the TSP.TALK account. If this is not leagleTom, that is ok to, I will have made it in my own account and update on that. The rules say to show the moves before the deadline, butif I can't hopefully I will be able to update the night before if I am planning on making the move.
 
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Frizz B. wrote:
I am now able to get online at work, so hopefully I will be able to update before the deadline, if not you will just have to believe me if I make myswitches in the TSP.TALK account. If this is not leagleTom, that is ok to, I will have made it in my own account and update on that. The rules say to show the moves before the deadline, butif I can't hopefully I will be able to update the night before if I am planning on making the move.
Frizz, That'snot aproblem as long as we knowyourdiffrential # you are using in advance and the shares obviously hit that number. We will assume a move. Then you can explain it when you get a chance.

Also, how do you make your transfers? Do you use the Thriftline phone system?

Tom
 
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I use tsp.gov for my transfers.

So here it is for tommorrow, I believe that the (S to I) will come in around 28 today, so if the S fund is outdoing the I fund tommorrow, and this will have to show at least a .50 advantage by the trade deadline. I will be moving my funds to the I fund. I am looking for a 320 differential for the F, and right now it is at 293 and after today should be close to 300. If the market has a good week, I will be looking to move the funds at the end of the week to the G fund. My last trade the differential was at 283, and although it went to 225, it has now come back to 293 and climbing. Patience, Patience, Patience.
 
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Frizz B. wrote:
I use tsp.gov for my transfers.
That's what I thought. So when you make your transfer, do you have time to write a quick X% this fund, X% that fund, in your account here while you are online anyway? Shouldn't take but a minute or two. Then you can give details when you get more time.

It is certainly not that I don't trust you. But if others can't do that, it would be hard to explain why you can. Your account and strategy is certainly serving its purpose and is sure helping others so I won't complain whatever you do. :)
 
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