Monday, April 2, 2012
2 Apr 2012
Yes, these are both very similar to a cumulative advance/decline line.
I've been trying to figure out a way to calculate the optimal time to close short sales. Obviously, there is a profit point where risking staying in the position is not worth it. If anyone has a spreadsheet model already built for a declining rate of return, please send me an email.
For example, shares sold at $10 go to $2. An 80% gain. Yeah, it likely won't retrace most of that and make a 500% gain quickly, but in order to get ten more percent, the shares have to decline 50% from $2 to $1. I am guessing there is a point where the return really starts to flatten out, and I would like to know its value.
at 9:56 PM