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Correction on previous posting:

I wrote to Rien:

In the first two steps(igoring the SAFE for now) the equity value returns to its orginal value y1...(at the start y1=pc1 also)

y3=y1+(pc1-y2)=y1 pc2=pc1 as you suggest ----->zero buy signal. OK!<?I>


Oviously this is incorrect for y3(the updated equity value. The correct expression for y3 is:

y3=y2+(pc1-y2)=y1 with pc2=pc1...

Conrad
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