Subject: Re: A mechanical strategy
Clarification - for those interested :
"Except its proportional to the degree of the Monthly drop and/or gain and its product - ie Hyperbolic function - which is an arch visually or an upside down one."
The series in question is of the nature of standard compounding
ie
1 - x - x^2 - x^3 .... - x^n etc
where the 2 sides are - for Buy the dip ( Switches sides for the selling/booking profits part]
Additive ( ie incremental investment)
Corpus/2* [ 1 - alpha +alpha*theta]
Subtractive
Corpus/2 * [ 1 - (theta - alpha) + alpha* theta]
Where
alpha = BTD threshold trigger
theta = extent of monthly drop ( treated positively) AND
theta > alpha for the buy to trigger