Value investing was the strategy of Bill Miller at Legg Mason, who beat the S&P for 15 years in a row. This year he is down 60% or so because was buying WaMu, Countrywide, Lehman, Bear, etc. all the way down. His theory was to keep buying until it goes up. He now claims this method of investing is a broken model after this year.

Not sure where you got the idea that anyone here would be investing only 1k?? I would never even recommend anyone try daytrading or swing trading with 1k. Commissions would surely eat you alive no matter what you pay.
Your concept is nothing more then averaging in as a position declines in value. I dont see what is so special about this method and why it has to be automated?? It would be better to manage the process as the bear market takes shape and adapt to the market as various news hits.

Looks like your spamming more then anything. 3 posts all promoting a book???? If you want to spread knowledge here do it without posting links selling something.

Ban??

Gee GittyUP,

Thank you so much for quoting my posts and helping me spread the word of my trading services. Please do keep it UP! GittyUP

So as Enron falls, you buy more? Really?

Also "This allows you to grow your portfolio when shares are cheap and it makes you sell them when they are overprices. "

How do you know it's cheap, or overpriced? Just because something used to have a price of $X doesn't mean it will ever be worth $X again in the future.

I also want to note that this strategy says that if you hold Microsoft in the early 90's, you should sell it. Why on earth would you want to do something like this?


EDIT: I think you used to work at Washington Mutual. If you followed your own advice and bought 10% more every time it went down 5%... well, now we know why you are spamming your book so much - I guess you have to eat somehow.

Please note regarding Enron, WAMU, Bear Stearns... In my book "Serious Money Investing", It clearly states that you only use this method with ETFs! Quoted from page 71: "One of the most important things to remember about Automated Process Investing is that it does not work for individual stocks. That point cannot be stressed enough. Because API is designed to take advantage of price volatility, it relies on investment vehicles that experience short term price volatility but maintain consistent positive long term growth. Exchange Traded Funds (ETFs) are the ideal investment for API because they can be relatively volatile, and are far less prone to catastrophic long term loss as may be the case with individual stocks...." So no sharpie337 no Enron, WAMU, Bear Stearns scenario. I must say I appreciate people attempting to criticize my Automated Process Investing approach - but would it not be a good idea to actually READ the book before offering commentary? It would make you sound as bit more informed and lucid

Yeah, because anyone here will actually read what you're hocking.

+1

used and loved them for years

Drquien, how many trading signals went off using your method over the last 10 years? What are the results of that? What's the drawdown and variance on your portfolio?


You clearly said "stock" in your original example, and your posting in a thread about trading individual stocks, and now you pull some bull**** about reading your book (which no one here will order, fwiw, so I hope you're not thinking you're going to make any sales through posting here).

http://www.stockwatch.com/

Pay site for RTQ and market depth if your brokerage isn't offering it. Checkk to see it covers all US indexes. Cheap. Has a free trial.

I've been using stockcharts lately, and I like it a lot. Good variety of scans. Good charts for 5min and daily etc. Easy, nice layout on market summary. Easily worth the 30-35/mo imo.

Some good reflections looking back on how far I've come and how far I have to go from page 1. I was curious about the overall process of API, but no I will not be buying your book. Surely, a model that simple does not accommodate all circumstances. Please take your snake oil and go knock on the next door sir. (oh btw, had fun w/ XLF this year?)

So after the stock market moves up by 116% (8%^10), you never invest again? Great plan.

I feel bad that this thread was hijacked.

Actually...This IS where you are wrong, you see, I get statistics that tell me how much traffic I get and where it comes from. And these statistics show that in the past 7 days, there have been 32 people referred to my site directly from this post. Now, what you need to understand is that about 1500 people have seen this post thread and they are not all as narrow minded as you are and are willing to "gamble" on something that may be profitable. Ehemm this is a forum for gambling no? And I make way more money on investing than you will ever make by gambling (BTW- this is a hot button I just pushed so you will react and respond).

So please, please, please keep commenting and help keep this post fresh and active so that more people see it and more people are referred to my site -

Oh and one more thing!! re-read the original post I made it clearly states "One last point. API recommends you only invest in Exchange Traded Funds (ETFs)" DUH!

Gull!!!!

OMG when oh when has the stock market, let alone individual stocks (ETFs), gone up by 116% without periodic 5% to 10% corrections??? To put it in context to something you may relate to...if you are playing 21, would you "let it ride" ten times in a row??? Or would you take profits off the table periodically? Well THAT is what "Automated Process Investing" does!

By the way...because of my system, I was 60% in cash when the Stock Market crashed in 2008, so while people lost 50% and 60% of their assets, I only lost 20% - yes sad to say a loss but one I can live with AND I have already mostly recovered from since the markets turned around on November 20, 2008!

I will not post a link again because seriously I don't want to be accused of spamming. But anyone interested...just do a Google search for "Automated Process Investing" and you will find me there. "Automated Process Investing" is all over the Internet and because I developed the method a majority of the 430 links, point directly to sites, blogs, radio interviews and forums I participate in.

Seriously though It is a great investing approach!

People clicking on your site != buying your book, first of all.

Second of all, I don't really care, I'd like to talk about your system and what the results are of backtests you would have run. I'd also like to know the drawdown numbers and if you can give a beta compared to a passive investment in SPY (I take it you have data for SPY ETF, but you can use whatever index you like), that would be great.

Until you give more meat on your system, you're not allowed to post on this forum, and if you do I'm giving you a one week ban. "Read the book" is not an answer.

Also, one last point, there is no way you made more money last year using your "Active Process Investing" against how much I made gambling. Keep in mind, I'm a trader, and I can run system tests too!

Ha! you are kidding right? you think your STUPID threat to ban me really scares me? There are 1000's forums out there and ...well please do ban me
C-ya

First...its called Automated Process Investing. Second...I am also an active trader. In fact...you can see my journal here:
http://www.squidoo.com/Stock-Assault-Review

oops sorry i think that was a bit of spam I just fed you

...

I googled "Automated Process Investing" (http://www.google.com/search?q=Autom...ient=firefox-a) - every single link seems to be flagged "Spam" and "this guy is a spammer". Draw your own conclusions.

Thankfully, this conversation wasn't a total waste of time. Why, I now have my new .sig for all outgoing email!

""One of the most important things to remember about Automated Process Investing is that it does not work..."
- Christopher Cerda, Author, "Serious Money Investing"

The threat shouldn't scare you, though. All I'm asking is for some simple number that you could probably pull out of excel as long as you have the data.

Seriously, why can't you tell me what trades your system makes on a particular ETF and tell me its performance? Is that too hard?

Well, now that you ask nicely, I will tell you. I am currently in Three ETFs (XLE - Energy sector) and (IYT - Transport sector) and (VAW – Materials). Now, Automated Process investing is not like "regular" event investing techniques where you "buy" and "sell" according to whether you think the price will go up or down. You basically get in – lets say you got in XLE on Friday Jan 6 at $46.65 and you bought 120 shares- and adjust your trades according to how the ETF performs.

So given the scenario just listed, all you need to do is put a limit buy at $44.32 (5% down) AND A LIMIT sell at $50.38 (8% up) and the # shares is 12 (10% of the shares you own). That describes “what trades your system makes on a particular ETF.”

I know the system is not as glamorous as swing trading or position trading or day trading, but it was developed as a long-term investing approach. The only other investing approach that comes close to it is dollar cost averaging.

Yes I did extensive back-tests on ETFs and these turned up the following performance results:

XLE 5 year period 2001 - 2006
Regular buy and hold = 123% growth
Automated Process Investing = 326% growth

EEM 3-year period 2003 – 2006
Regular buy and hold = 107% growth
Automated Process Investing = 172% growth

VAW 3-year period 2003 – 2006
Regular buy and hold = 46% growth
Automated Process Investing = 77% growth

These are true measurable back tests. Actually, this system lends itself to back tests because its automatic. There are no MACDs or Stochastics or On Balance Volume or other technical indicators to analyze. All investing decisions are just based on the 8% up and 5% down rule. So you can pick ANY ETF and perform your own back test and see how it would have turned out if you had used Automated Process Investing.

Hope this answers your question and thanks for listening

Really sharpie a mind is a terrible thing to waste. I truly and honestly feel sorry for you - and wish you the best, you really need it.

So, how's that ban coming?

Great historical back test there, you didn't cherry pick those time periods or anything! Also no information on draw downs, beta, or any price point comparisons. Don't worry, I'm sure you'll find thousands of internet boards which won't demand stuff like logic, results, or care if your sales pitch resembles that of a pyramid scheme salesman.

Why are you still engaged with a blatant spammer who has clearly expressed his intent?

Twoplustwo is a popular site, its possible that when you google his book, it'll point to this thread. He'll be exposed in here to anyone who wishes to google for him. I asked reasonable questions and have only received unreasonable answers. He'll give up soon anyway.