Hi Allen, Re: Min Trade Size...........
As I've mentioned, I approach the min. order size a bit differently than Mr. L. I have been using a percentage of the Portfolio Control (PC) value as my minimum dollar size trade. This is for both buying and selling.
In sequential selling, I'm always selling the same dollar amount since PC is always the same. In a sequence of buying the PC is increasing with each buy and so is the size of the minimum order value as it tracks the %age increase in PC.
In this method, the number of shares bought or sold will be different with more shares being purchased than sold for any particular PC value. (PC value divided by the Price/Share at the AIM trigger points.)
Let's say PC value is 100,000 and we're using 5% of it as our min. order size. That's $5000. Further let's assume that the price/share is $50. Our settings give us a sell price say of $57.50/share and a Buy price of $42.50. So, we'll buy ~118 new shares but only sell ~87 shares. In share count this could be considered bias toward accumulation.
I never liked the asymmetry of the Buy/Sell min. order size when it was based as a percentage of the stock holding's value. Percent of a smaller stock value when buying vs selling seemed odd. Further, when sequential buying occurs with % of PC the order sizes keep growing. That isn't necessarily true when a declining stock price times the # of shares owned is still smaller than at the previous buy strike price.
......Just another way of accomplishing pretty much the same thing.......
