A.I.M. Users Bulletin Board

[ls7550]

RE: AIM-HI Quarterly

For AIM-HI (20% cash), Robert Lichello suggested using 10% minimum trade size to preserve cash that bit longer and to prevent AIM spitting out repeated trades month after month.

I've noted however that if you AIM-HI quarterly using 5% minimum trade size you achieve similar overall results to monthly AIM-HI with 10% minimum trade size.

A benefit of quarterly reviews is that you can tie that with a bond ladder. One bond/rolling (or some of the proceeds being used to service AIM buy trades) means that there's no capital risk (bond matures at its par value). And four bonds being rolled each year is obviously less expensive to maintain than one bond/month being rolled.

Quarterly AIM-HI with 10% minimum trade size appears to be too wide a gap and can accumulate too much cash even when 20% Vealies are being used.

Yet another observation with quarterly AIM-HI with 5% minimum trade size is that it didn't run out of cash either during the 2003 lows nor the 2008 lows (whilst AIM-HI monthly with 10% minimum trade size did). i.e. similar rewards, without having exhausted cash reserves.