PID feedback controller used as a tactical asset allocation technique: The G.A.M. model

The objective of this paper is to illustrate a tactical asset allocation technique utilizing the PID controller. The proportional–integral–derivative (PID) controller is widely applied in most industrial processes; it has been successfully used for over 50 years and it is used by more than 95% of the plants processes. It is a robust and easily understood algorithm that can provide excellent control performance in spite of the diverse dynamic characteristics of the process plant.