FundSurfer wrote:
A couple questions about your system:
1. You seem to have maximums in each fund that you do not exceed. When you sold S-fund you put it all in G even though C and S still were in buy?Have you considered not using fund maximums? Maybe shifting into C or S in this situation rather than I?
2. Looking at your curve following approach, could you look at the slope of the curve to see which fund is hotter and perhaps weight your allocation percentages accordingly?
Don't get me wrong, I like very much what you are doing. I'm a tinker at heart am always looking at possible improvements.
The max allocation for each fund at any given time usingthe 5-5-10 Rule should be F=5, C=25, S=30,I=40. In a trending market it seems as if you aremaking transactions almostdaily. It happensuntil the trend is defined. The allocationcame about calculating volatility, potentialrisks, rate ofreturns and diversification.
Someonewith small account might not see the benefit in investingsuch small amount in the F-Fund. The bottom line is not risking everything in a particular fund at any given time and trading each fund independently, as a single account, based on its behavior.
I am not sure I understand using the slope of the curve todetermine allocation percentages. Would you PM with a hypothetical situation?.
Thank you for your comments.
TSPGO!