This is Why I prefer Index Funds :)

as this is a long term plan yes i was planning to hold for many years - with this strategy i didnt think i would need to exit at all except near retirment

as investors we know that if we are in this for the long run then we may go through such crashes - but in the end markets do rise and as you have bought lower when market gets back rallies you will be a lot better off - rather then selling up in bad times.

do you think a full exit plan is needed - see if this was a pension etc it would be held till you would need to crystallise - maybe plan for this 5 years before you need to retire.

you say 40 % loss - but this was followed later by gains which far outweighed these...

again would like to make this a long term plan so any tweaks changes you feel would be greatly appreciated....

thanks
 
as this is a long term plan yes i was planning to hold for many years - with this strategy i didnt think i would need to exit at all except near retirment

as investors we know that if we are in this for the long run then we may go through such crashes - but in the end markets do rise and as you have bought lower when market gets back rallies you will be a lot better off - rather then selling up in bad times.

do you think a full exit plan is needed - see if this was a pension etc it would be held till you would need to crystallise - maybe plan for this 5 years before you need to retire.

you say 40 % loss - but this was followed later by gains which far outweighed these...

again would like to make this a long term plan so any tweaks changes you feel would be greatly appreciated....

thanks

OK I've got it, thanks for putting up with me. I'll come back to you with a what if scenario to demonstrate the point and perhaps a simple adjustment.
 
cool...awaiting your post

i will also aim to post some data on this evening about how this would have made a lot more then buy and hold
 
I know in Forex the brokers make an over night charge. So this forces investors/traders to only do short term.

How is it for longer term futures traders ? Any long term charges etc. ?
 
@Pat494

the above is all within ISAs so only fee is the one charged by the fund and broker...

Its the lowest on the tracker about 0.5% or less per year
 
cool...awaiting your post

i will also aim to post some data on this evening about how this would have made a lot more then buy and hold

I've started to take a look and noticed one thing immediately. You obviously want prices to rise and so in your 70% drip feed your average price therefore increases.
This means that when you exit, you exit with a heavy loss as your average price is high
you are buying back at more than half the amount you are entering, so you are taking advantage of lower prices at half the amount you are incurring any potential losses
changing this immediately would have a more postive impact, as in your drip feed should be 30% and your buy back at 70%
thats the first thing I've found, but I'll give you a complete example to demonstrate it and then we can start thinking about protecting your capital or else i do feel you will have very little return in the end depsite your intentions of getting lower prices

I'll come back with more...
have emailed you now the results, we'll look at how we can improve it and give you a simple view of my strategy and see if that wouldn't be better
 
Last edited by a moderator:
Top