Friday, May 22, 2015 5:07:15 PM
Re: How is the above not LD-AIM?
Hi again j...
Well now that you've explained it I guess it is!
In fact it makes perfect sense given the tolerance levels you mention ($40 k in instead of $80k and $20k cash.
I just think those are arbitrary.
Besides, I've never agreed with Lichello's AIM-Hi, especially with resepct to individual equities. 20% is not a lot of insurance. And by saying that you don't want to buy in for more than $40k, you're also saying I want more than 20% cash reserve.
In your original post your use of the word 'leverage' was not what threw me off.
Rather, it was that you didn't mention virtual shares or that portfolio control included the intital value of them. I can see now that they did.
As for the cash portion of your explanation, LD-AIM has no 'rules' per se related to cash other than having enough at the beginning to cover your # Buys inputs. Any remaining can be redeployed.
And you only actually buy the # of shares to cover a reasonable # of consecutive sells out of the gate.
Bottom line is that I had always felt that there was no need to tie up $ just to set that initial PC. You're not likely to sell them anyway.
In my mind, those $ going to PC are 'excess', which aren't really invested with the expectation of an eventual gain anyway. At least within the context of Lichello's use of them.
BTW: Thanks for the Kudos on the spreadsheet.
When I built that, I didn't want to make arbitrary decisions on the Virtual/Actual portions. so I put in the # Sells & # of Buys logic to help out in that regard.
All very interactive IMHO!
This one below gets pretty close to your scenario supporting 10 Sells & Buys (not that either would ever actually happen consecutively).
It ends with initial Capital at Risk of only 40,130 (your goal) but a PC of 100,000 which would improve your return I think.
Then, 'Cash Reserve' plus 'Cash Saved' totals 59,870 (close to your $60k).
Hopefully you'll see what I mean.
In your scenario, Grabber introduced them to LD-AIM, where he convinced them to deploy only $40,000.
Grabber would have used the worksheet to rationalize the inputs to get to that output.
And Grabber would have generated an enhanced scenario whereby PC equalled 100,000, not 80,000. <Tongue firmly planted in cheek.>
Excel is very good at 'what-if' stuff.
Hi again j...
Well now that you've explained it I guess it is!
In fact it makes perfect sense given the tolerance levels you mention ($40 k in instead of $80k and $20k cash.
I just think those are arbitrary.
Besides, I've never agreed with Lichello's AIM-Hi, especially with resepct to individual equities. 20% is not a lot of insurance. And by saying that you don't want to buy in for more than $40k, you're also saying I want more than 20% cash reserve.
In your original post your use of the word 'leverage' was not what threw me off.
Rather, it was that you didn't mention virtual shares or that portfolio control included the intital value of them. I can see now that they did.
As for the cash portion of your explanation, LD-AIM has no 'rules' per se related to cash other than having enough at the beginning to cover your # Buys inputs. Any remaining can be redeployed.
And you only actually buy the # of shares to cover a reasonable # of consecutive sells out of the gate.
Bottom line is that I had always felt that there was no need to tie up $ just to set that initial PC. You're not likely to sell them anyway.
In my mind, those $ going to PC are 'excess', which aren't really invested with the expectation of an eventual gain anyway. At least within the context of Lichello's use of them.
BTW: Thanks for the Kudos on the spreadsheet.
When I built that, I didn't want to make arbitrary decisions on the Virtual/Actual portions. so I put in the # Sells & # of Buys logic to help out in that regard.
All very interactive IMHO!
This one below gets pretty close to your scenario supporting 10 Sells & Buys (not that either would ever actually happen consecutively).
It ends with initial Capital at Risk of only 40,130 (your goal) but a PC of 100,000 which would improve your return I think.
Then, 'Cash Reserve' plus 'Cash Saved' totals 59,870 (close to your $60k).
Hopefully you'll see what I mean.
In your scenario, Grabber introduced them to LD-AIM, where he convinced them to deploy only $40,000.
Grabber would have used the worksheet to rationalize the inputs to get to that output.
And Grabber would have generated an enhanced scenario whereby PC equalled 100,000, not 80,000. <Tongue firmly planted in cheek.>
Excel is very good at 'what-if' stuff.
Best Regards, Steve (The Grabber)
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