Hi Tom
It is the result of using cross-overs with AIM.
I also feel that this is definitely associated with use of the AIM strategy.
BTB aim after its stock selection says that
any time is a good time to start an aim position of which I disagree.
I am convinced that the best time to initiate
an aim position is when its MCAD does a
crossover. Upward or downward.
If I were to BTB any of the four stock, a position would not be started until its MACD did a crossover.
The 100% level rather than 80/20 would be
selected because I feel the probability of an upward move after a crossover is higher than 80/20.
Now, once an entry position has been established, do I apply the BTB sales strategy?
No. My sale strategy is to take no action until its MACD does a downward move.
Once the MACD downward crossover occurs, I will 100% liquidate the position. Why?
1. The cash from the sales will not be released while the stock is in a downward move. I will not use the cash side to average down.
2. The MACD crossover suggest a high probability of a downward move.
So, the stock side is also liquidated so as not to lose its value from the expected downward move.
I will not take anymore action until the stock
starts an upward MACD crossover move.
The same process is repeated.
This is the strategy that I used on the four stocks.
Regards
O Croft
