A.I.M. Users Bulletin Board

[The Grabber]

Hi again j.

OK. I trhink I understand now. But...

That would be LD-AIM with a 2X leverage.

Just being picky here, but what you did is not LD-AIM.

Paraphasing a line from my favorite movie:
"I don't think that word means what you think it means".

Whenever I see a post that might muddy the LD-AIM waters, I always feel the need to clarify what LD-AIM is and how to execute.

To start an LD-AIM program, you only buy enough Actual shares to cover 'X' # of consecutive Sells using your settings.

The Virtual shares you 'buy' (actually don't buy) are carried for the life of the program.

The sum of actual $ spent and virtual $ 'spent' make up your initial Portfolio Control.

Manage the program the rest of the way as a regular AIM program.

There are no 'factors', 'mulitpliers' or other complicating matters to be of concern.

So, the $ you didn't actually spend decreases your capital at risk for the life of the program versus a Classic AIM program wirh the same settings.
So by definition, everything else being equal, the ROCAR rate on LD-AIM will always exceed it on Classic AIM until such time as you sell out of Actual shares.

The cash you didn't spend by buying all Actual shares can be used to have a larger cash reserve, or better yet, used someplace else to help you diversify.

Back in 2003 when I developed the concept I did so out of a need to diversify my very limited funds available at the time. My # of programs grew from 4 to as many as 22 and is currently at 16.

Just Sayin'...