Stock trading system – The rule for making shifts specified that the market must move 20 percent before a shift would be made.

The unusual twist is added by a rule that the original percentage is not to be re-established at the adjustment point, but that if the trend is up, only enough stocks are sold to bring the stock portion down to 36 percent, and if the trend is down, only enough are brought to bring it up to 30 percent. If the trend still goes in the same direction, the next shift will move the stock percentage to 39 percent or 27 percent, depending on direction of the trend. No further upward or downward percentage adjustments are made, if the market continues in the same direction, but at each transfer date thereafter, the 39 percent or 27 percent figure is still observed, but now at every 10 percent move in the market, instead of at 20 percent. But when the market reverses its trend, by at least 20 percent, then the original 33 percent figure for stocks is re-established, and the plan starts all over again. During the period tested, the total $100,000 account grew to $130,319, while the Dow-Jones Industrials were increasing by over 80 percent. The formula is a conservative one, but does have the advantage of allowing larger purchases of stocks in a wide bull swing.

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