[DcifrThs]

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Good point. I'll factor in the volatilty of each stock (beta?) and weight it appropriately. From my strained memory of my economics degree, if beta = 2 that is double the reaction to the market than if beta = 1, thus do i put half my position on a beta = 2 stock relative to a beta = 1 stock.

Is there anything else I should consider?

Also, I'll also be using a set % of my portfolio value for each position, thus if my value drops by 1/2, then so do all my new positions (and to an extent my present positions).

Thanks for your help.

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you would have to be careful with this since the "beta" changes all the time.

it isn't a static # for any given stock (though i doubt it moves much). the main thing you'd have to program in is a recalc of the betas (and thus yoru positions) afer large market moves, or large moves in your stock prices.

Barron