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I'm assuming dROI is daily Return On Investment (this very well could be wrong, I haven't checked). My explanation is inside
If you wanted to calculate the dROI for a starbond X that was adjusting today and was going to be in Hunger Games 2 (or some other movie that was going to make >$250) for his/her next adjust in Y days, we could calculate it (the formula has been stated above somewhere). However, that calculation assumes that if you were to invest in that stock today, you are gauranteed the full profit that X should adjust up divided by the current price divided by the total number of days Y it took to get there, giving you a rate investment returned per day. This is a constant, which represents the amount of investment returned/day (not quite true if you account for commision).
I believe the argument is that if the next adjust is much higher than the current adjust, the total profit to be made could be misleading since you are not accounting for how long (Y --> dROI) it will take to make that profit or the current price of the bond. It may be more worth your time to invest in a bond that has a smaller net adjust, but that adjust takes place in less amount of time so that the dROI is larger or in a bond that cost less. I understand this argument (if this is fact the argument...).
MY ARGUMENT is that most bonds tend to go from their adjust price to near their predicted future adjust price in a matter of 1-3 days. Thus, the ACTUAL dROI (that is, investment returned/day) is different. You can almost factor out how many days it will take for the next adjust and just divide by 2-3 to get a prediction of the ACTUAL dROI. Then, the only thing you need to worry about is the regular ROI.
I guess I'm basically saying that for the first 1-3 days after adjust, dROI ~ ROI/1.5.
I found an interesting example of why context is needed wth respect to the Post Adjust Bond Show, with respect to dROI.... Apr 26, 12:46
bond1=best Apr 26, 12:48
perfect example of the flaw with droi Apr 26, 15:21
This was not meant as a criticism of your hard work. Only to point out context necessary to make good use of it. Apr 26, 20:15
um... (don't know what to put here ~ again) Apr 26, 21:48
Um..How can we search for Fembot's thoughts on trading? {nm} Apr 27, 14:53
um... Apr 26, 20:50
I suppose it depends what your definition of fun is. Apr 26, 23:07
"If It Makes You Happy.... Apr 27, 09:04
half of my message is missing :( {nm} Apr 27, 09:05
Hmmm... if you don't day-trade and you don't use dROI, what Starbond tool do you use? Apr 27, 10:09
he says they're attached to the same movie, so surely they adjust over the same period {nm} Apr 27, 00:35
um... Apr 27, 08:20
to wit: Apr 28, 19:08
No {nm} Apr 29, 09:47
Yes, for the purposes of comparing the three examples it is. {nm} Apr 30, 17:34
no it isn't... Apr 30, 20:18
Answers...(no fair peeking until you have an answer written down) Apr 26, 12:52
Fantastic debate between some of the heavy hitters! Apr 26, 23:07
Implying that I actually use a mix of both investment strategies and it works great. Thanks to both of you. {nm} Apr 27, 11:10
Heh - I thought I knew what you meant until I read your IM. {nm} Apr 27, 13:28
I am not sure what you mean because your terminology is off....BUT Apr 27, 20:33
I'm assuming dROI is daily Return On Investment (this very well could be wrong, I haven't checked). My explanation is inside Apr 28, 09:13
This excludes any bounce phenomena {nm} Apr 28, 09:31
(Oh actually, it's not the Bounce - but I think my IM still has it) {nm} Apr 28, 09:41