Gulu, the method was shown to me by a friend some time ago.
The method developer, Lim, used levels based on price percentages going all the way down to -95%, and advocated using it on ETFs and composites only since they cannot go to zero.
The big hole in the method is that capital may need to be allocated indefnitely with buys taking place at each predefined level and no guarantee of periodic returns.
When I realized this, I did not go into it further.
IMO, there are better ways to do 4-8% a month with less risk and complication.
It is averaging down, no matter how it is presented, only suited for deep pockets that are willing to tie up capital for a long time if necessary.
The method developer, Lim, used levels based on price percentages going all the way down to -95%, and advocated using it on ETFs and composites only since they cannot go to zero.
The big hole in the method is that capital may need to be allocated indefnitely with buys taking place at each predefined level and no guarantee of periodic returns.
When I realized this, I did not go into it further.
IMO, there are better ways to do 4-8% a month with less risk and complication.
It is averaging down, no matter how it is presented, only suited for deep pockets that are willing to tie up capital for a long time if necessary.