:)

I had a chuckle too .....

QUOTE :This reminds me of that.

Theta? Alpha? Corpus? I haven't read the book and I have no idea what those mean.

:ENDQUOTE

I didnt either - I interpreted them from the link you provided- I dont think you bothered to read it thoroughly.


I glanced at the spreadsheet provided by Cathy ....

Theta = Limit column ( Market price movement %)
Alpha = Safe fraction : Here hard-coded to 0.1 or 10% - ideally you would like this to be a parameter - hence greek notation

Corpus = Your capital ie money you have. Over here is $2000 - Columns E and G.

There's ONE BIG DIFFERENCE between the link you gave and Cathy's linked spreadsheet - and that's how the incremental investments work

Col L : It checks to ensure that the amount of suggested incremental investment has to Exceed 5% of the current value of cash held - since its ABS so its both ways - ie Buy and Sell - ie those have to be in excess of 5% threshold for a Buy/Sell to be triggered.

That's an interesting element.

Anyway - I do hope spreadsheet works - I have this experience in the past people who are super comfortable with Spreadsheets - but translating the same into a mathematical formulation makes it go over their head. My only issue with that is - Excel is notoriously fragile in terms of formulaic error propagation and change.

All the best!

Mechanical Investing FAQ

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