Thread: Malyla's Account Talk

Originally I was running programs on my LINUX box trying to find the method that produced the highest return, and also with the least amount of downside risk. For example, I would set my parameters to find a method that, at the worst, returned the same as the S&P, with no negative members of the ensemble. I then came up with several different methods, based on different technicals, for 3, 5, 10, 15, 20, and 30 year time periods. Of course they were all different. If i get back into this, I'm gonna devise 2 different trading schemes, by separating out all the BULL markets through history, and all the BEARS. Because as we all know, what works in bull markets does not work during a bear.

I hope you succeed!

Originally Posted by airlift

I hope you succeed!

I hope I succeed as well. The only problem is that it may be another 3-5 years before I see for sure. Really it should be 8 years to be sure the business cycle is still valid, but I'm in for the long haul.

I have put the intermediate terms in the excel spreadsheet. See post #70-72 in the Last Month's Best Fund Method Strategy tread for more info. In a nutshell, ignore the intermediate down term during the Bull market cycle, but BIG money can be made during the intermediate up term during the Bear market cycle.

Good luck.

Thank you for the hard work and sharing the comparisons with us.

Originally Posted by squalebear

Thank you for the hard work and sharing the comparisons with us.

You are all welcome. I have learned so much from everyone on this site. My only regret is not finding this site a lot sooner than I did. My real fund is not doing anywhere near as well as the B&H and cycle B&H comparisons due to being very conservative the first 5 years of my tsp investment. When I see where I would be if I had just been an aggressive B&H, I feel sick

Now with the cycle B&H and some help from the TAs and others on the board, maybe I will make it to where I need to be in 15 years for a comfortable retirement. I wish for all of you to make it there as well

G.L.

Squalebear's Account Talk

I tried to answer the question you posed. Click the above link.

Originally Posted by squalebear

Squalebear's Account Talk

I tried to answer the question you posed. Click the above link.

Thanks squalebear,

I read this article. The equations I'm using match with the first one in the article. I then used the last equation to take time weighting of contributions into account and the result was the same +/-0.02%. I'm pretty sure I'm doing the calculations correctly (they are based on Tom's spreadsheet)

The returns starting Jun 2003 are still showing radical difference between the returns calculated using the monthly fund returns and allocation percentage compared the the returns that use the dollar amount of my account at the beginning of each month, contributions for that month and the dollar amount at the beginning of the following month. I can not understand why there is the difference. Below are the equation used. I will try to post the picture of the spreadsheet shortly.

Monthly returns from Monthly Fund Returns and allocation percentages:
(100*(1+((S1*AP1)+(S2*AP2))) - 100)/100
where S1 and S2 are the fund monthly return (ex. If you where in C&S then, S1=-1.47%, S2=-2.02% for 1/1/2002.
AP1 and AP2 are the allocation percentages for the funds you are invested in (ex. account has 50% in C and 50% in S, so AP1=50% and AP2=50%
(100*(1+((S1*AP1)+(S2*AP2))) - 100)/100 = -1.745%


Monthly returns from Dollar amount at the beginning of the following month, total contributions made the month under consideration, and the dollar amount at the beginning of the month under consideration:
(((DA2-(C1))-DA1)/DA1)*100%
DA1 is the dollar amount of your tsp investment as of the 1st of the month you are calculating (ex. Jan 1st 2002 dollar amount from your account)
DA2 is the dollar amount of your tsp investment as of the 1st of the next month. (ex. Feb 1st 2002 dollar amount from your account)
C1 is the total contributions (15% plus matching) made the month you are calculating (ex. total contribution into your account for the month of Jan 2002)
NOTE: The +/-0.07 difference between the monthly returns from dollar amount and the returns from the Monthly Fund Returns is due to the the formula not using the net cash flow weighted by the days invested.
Investment time weighting equation:
(((DA2-(TC))-DA1)/(DA1+((C1*D1/Mday)+(C2*D2/Mday))))*100%
TC = total contributions for the month of Jan 2002
C1 = first contribution invested on day D1 in the month with Mday number of days in that month (ex $300 invested on the 5th and 19th day in a month with 30 days gives C1 = 300, D1=5, Mday = 30)
C2 = second contribution invested on day D2 in the month with Mday number of days in that month (C2 = 300, D2=19, Mday = 30)
This difference can not account for the radical change starting in June 2003.

Seems complicated - I usually prefer to close my eyes and hold my nose before I invest. A rather simple system similar to a random walk theory.

Originally Posted by Birchtree

Seems complicated - I usually prefer to close my eyes and hold my nose before I invest. A rather simple system similar to a random walk theory.

Not helpful! Please leave your inane and trivial comments for your tread. Don't respond to a valid question with tripe.

Here is a must see video. It's a Joss Whedon production and very funny. It's three parts and it will not be available after July 20th.

Enjoy.

http://www.drhorrible.com/

We recently broke the 26 year trend line - that means the future is uncharted. We all take are chances. Sorry to realize you are also puerile but you are not alone. Snort.