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Oh my! 22 years ago!
That pic brings back so many memories.
'socal' was the life of the party.
Yes
Standard AIM is standard AIM no matter how much you start with. 50% stock and 50% cash.
You can adjust the starting point a bit but then you are market timing. Maybe 40% stock a year ago compared to 60% stock if you were starting at what you felt was the bottom of the market.
Toofuzzy
Thank you Toofuzzy for offering up these great suggestions.
$20,000 to start an AIM engine makes a lot of sense. In your view, will a $50,000 or even a $100,000 engine operate in a similar manner to a $20,000 one?
I have looked at LD_AIM in the past and I am now inspired to have a sober, second look.
I think the mistake that I was making was concentrating too much on the shorter term.
I was adjusting too many settings to get the perfect exit. Spaghetti AIM.
Together with Tom's advice on the merits of long-term investing, your ideas are indeed valuable and very much appreciated.
Continued success,
Old John
Hi OJ, Re: ............position that is closed after a 100% profit......
A 100% profit as a goal is a bit thin compared to some long term stock price histories. A favorite book of mine is "100 to 1 in the Stock Market" by Thomas Phelps.
(1971, ISBN 0-0704-9772-9)
It might be hard to find but was an interesting book that challenged my own thinking. He said, "The reason people don't make more money with stocks is because they set their investment goals too LOW."
Best wishes,
Tom
Personally I find $20,000 with standard AIM is the minimum I want to start with. $10,000 in stock which gives min trade of $500 and profit of $75 on first sale.
With LD AIM 5% SAFE, 10% MIN ORDER SIZE you might start with $3,000 in stock and $10,000 in cash ( or a bit less at bottom of market ). Your first trade will be $1,000 with a $100 profit if a sale.
Or don't use AIM and just buy or sell on a 20% move.
Or just buy a few things and rebalance once / year till the account grows.
No sense trading just to trade.
Toofuzzy
Hi John..
I’ve been there too! When that occurs now, I will check to see how much cash I have in reserve and consider sending the purchasing department on a 30 day sabbatical unless the price drops a percentage (i.e. 15%-20%) below the last purchase price. If low on cash reserves, I will use half for a purchase and go on another 30 day freeze.
Nice to have you on board, John.
Take care.
Jon
Hi Jon
Your point is well taken. I just completed a buy transaction at a price below my target. Congratulations to me!!! Except the price has kept falling!!! Outsmarted myself again. Grin and bear it and wait for the next signal :)))
Thanks for providing the weekly cash % levels. They are very much appreciated.
Really, really Old John
Hi Tom, thanks for this great explanation.
I dug out my old, tattered copy of the book and discovered the root of my confusion. Mr. L mentioned that it is a "synchrovest" position that is closed after a 100% profit. I suppose that this in theory, could also be applied to an "aim" program. But I do question the benefit of doing so.
Really Old John
Hey Jake.
Thanks. LD-AIM is valuable in my mind.
Come December, it will be 20 years since I finalized the concept and built the LD-AIM setup spreadsheet.
Personally, I've been using it ever since and am happy with how it has been turning out.
It is a little frustrating at times to to see it incorrectly described or really misunderstood.
But that's for another day.
With regards to the Younglings:
Not sure how small their available capital is.
But with zero commissions AIM can be profitable at pretty much any level.
As for fractional shares, that shouldn't be an issue at all.
At it's core, as designed by Lichello, AIM provides all of it's direction in $. So stock price really just ends up being a divisor when you place your Buy or Sell order.
The LD-AIM worksheet will allow for this if you just enter $1.00 as your price per share.
Even $500 works! But we're talking very small $. But 30% Gain if the 1st 5 transactions are Sells.
Let me know if this helps!
Steve (The Grabber) - I hope you'll do this.
Good Morning Toof.
Responding to my question regarding what you meant with 'amplified', you said:
As you know with LD AIM you pretend you have more shares than you really do and your min trade size is 10% rather than 5% so your trade sizes are bigger than with standard AIM owning the same # of shares
OK. fair enough, but min trade size is an input and is % of PC in calculations.
A 2:1 relative min trade size does not come into play at all in any LD-AIM Calcs versus Classic AIM.
Apparently some myths have evolved regarding LD-AIM.
I'm thinking about prepping and posting some info on LD-AIM to dispel them and hopefully clarify. I might need to do a little more clarification in the actual worksheet as well.
I wouldn't want to be the genesis of more myths.
Hi Steve
As you know with LD AIM you pretend you have more shares than you really do and your min trade size is 10% rather than 5% so your trade sizes are bigger than with standard AIM owning the same # of shares.
Toofuzzy
Hey Toof.
From your post in 2021.
I had a big sale in STKL. It is a LD AIM account so the trades are amplified.
'Amplified how'?
Do you mean that the returns and ROCAR are greater versus your Actual Capital at risk?
Well Tom.
I'm still 18 months away from being able to make that particular observation.
After a hectic week last week I've given the Purchasing Department the next 30 days off with Paid Leave.
OAG
Hi Grabber,
"73" is just a number.........
......a really HUGE Effing number!!!!
Oops!
I'm an Old Fart, but you're an Older Fart!
But only by a year and a half.
Hi Tom:
And Happy Birthday!
It's your 72nd if I'm not mistaken.
If so, does the Rule of 72 somehow come into Play?
If not, Mea Maxima Culpa!
As for my boss thinking I was a 'Day Trader', I didn't disagree, but decided to think of it as trading on the days that AIM directs me to do.
Happy birthday to OAG !
JD,
Thanks for the Birthday Wishes and the words of wisdom from the Far Side!
The good news is I can still count as high as I am old - and in three languages (I think!).
It does feel like the AGEmobile is accelerating, but maybe is still under control.
Best wishes,
OAG Tom
Grabber, How's that Day Trading going since then???!!!
He must have been listening with just one ear......
I describe my work to people as "months of boredom broken up by occasional short bursts of frantic activity." This last week was more toward the latter end. I can't say I was bored!
On average my AIM accounts have around 4 to 6 annual trades per AIM engine. Some income holdings don't trade but maybe once or twice per year. So, I guess we AIMers are failures as Day Traders........
OAG Tom
Hi O.J., Re: Rolling an AIM engine into a new equity..........................
I believe Mr. L felt an existing engine could be run on different fuels. You can sell the equity in question and replace it with a new one of equal total value. That way one wouldn't have to restart with a new Portfolio Control. Further he talked about a single AIM engine with multiple holdings as his main thesis. So, maybe he was referring to a portfolio of stocks or funds and replacing just one component inside it.
I'm not sure this is any better or worse than any other method. I don't think he specifically addressed a single investment AIM account and how to change out an investment, but would have to check the book. He said maybe multiple AIM accounts might out-perform a single one with multiple equities but said he wasn't sure it was worth the extra effort.
Back in the '80s when I first started using AIM I ran my portfolio as a single AIM engine. Then I started concentrating certain sectors as separate AIM engines. Finally I switched over to individual AIM engines for each investment. Much has to do with the total portfolio's current value. If it's just $10K then a single AIM engine will work fine or maybe Grabber's LD-AIM. I think10K is about the smallest one can effectively make a traditional AIM work. However, if one has $100K then one could easily run multiple AIM engines quite effectively.
In my "Sandbox" individual company stock portfolio I have 10 stocks. Each is a separate AIM engine. When I've left one to start another, I take the value of the 'old' stock as sold and start a new AIM engine with a new Portfolio Control and set the Cash Reserve where the old cash level was. In essence, just like starting a new investment with AIM.
Hope this helps,
OAG Tom
PS: it's funny how things come full circle sometimes. In the New Millenium I started using Sector ETFs a lot. They offered some of the benefits of owning a single stock such as greater frequency and amplitude of price movement compared to traditional mutual funds and also some of the benefits of having greater diversification. Not "sector" diversification, but lowering Single Stock Risk.
RE: Black Monday
Good Morning Tom.
I recall you previously sharing your story about your 1987 experience and your epiphany regarding AIM.
By adding the Wikipedia article to it on the 33rd anniversary of Black Monday sure does put your story in perspective. The 20 minute ticker delay for most people probably amplified the 'panic' by at least an order magnitude.
If memory serves, I happened to call out sick that day (a rare occurrence for me).
I watched Stuart Varney report on it as he was with CNBC at the time.
Crazy day.
That's a great anecdote Tom!
Thanks for sharing.
I was at lunch with my boss about 15 years ago and we got to discussing investing. I gave him a brief explanation of AIM in general as my favored approach. He really couldn't relate.
In the ensuing years, he referred to me as a 'Day Trader'!
Good guy. Fellow 'Sconnie' (grew up in Neenah). He retired about a year before me.
Had a really nice home built on the Lake Winnebago shore in the Oshkosh area.
Me too Jon!
From your post of 7/21/20...
Sales department arrived before the crack of dawn and went to work selling 10% of SLV. And for all those concerned, they were wearing masks.
My Sell on 7/21 was for 5% of my shares @ $19.14
As you alluded, Sells of SLV during that time were surely pandemic related.
I started an LD-AIM program on SLV in April, 2013.
Until the pandemic arrived It was a very nice back and forth favoring the Buy side 26 times and Selling 14.
Then...
Between May and August of 2020 I had 7 consecutive Sells.
Following then until now, only 4 Sells vs 6 Buys.
This program is a great example of how if you run LD- AIM vs AIM BtB, you likely will never sell any of your original position, Actual or Virtual. Especially on an ETF like SLV.
I was one of the folks from DFW who saw this post in LinkedIn!
Greetings aimers. No recent buys or sells for me. I'm hoping that some of my targets will be hit next week. Still have a fair bit of cash on the sidelines.
Out of curiosity, could somebody please remind me what Mr. Lichello said about ending a particular position. Or do you just keep aiming forever???
"You got to know when to hold 'em, Know when to fold 'em,
Know when to walk away, And know when to run."
Hi Steve, Re: Off Topic AIM.......
I was well north in Wisconsin one Fall with a friend. We were closing up their cottage, taking out the boat and lift and giving the lawn its last Mow of the season. After a full day's work we went to a local tavern for some food and beverages. I was wearing my AIM hat and several of the locals (Lac du Flambeau local tribe) came up and "high fived" me or nodded approval. It didn't dawn on me until much later that they interpreted my hat as meaning "American Indian Movement."
Funny how three letters can mean so much to so many different people!
Best wishes,
OAG Tom
Hi Karl, Re: Cash utilization and current Market conditions.......
My Ultimate Buy and AIM portfolio UBA is currently ata little over 16% cash even after a bunch of buys in that account.
My US Domestic Sector ETF portfolio is sitting at 13.9% cash.
The International Style ETF portfolio is holding at 17.9% cash.
My "Sandbox" 10 company stock portfolio is currently 25.8% cash, so even with "single stock risk" it has a lot of purchasing power left.
The biggest and longest draw down in cash is in my "income" portfolio where it's down to 4.3%. The good news is the average yield has been going up. The bad news the price/shares has been going down! Overall, its dividend yield has risen to a level not seen since the COVID lows.
Best wishes,
OAG Tom
Value Line
Tom & Jack:
Pre-Internet and Personal computing (early-80's), I was part of an investment club with some work associates.
We always did our research in Value Line at our local library.
Sometimes we would take photocopies of the few pages for companies we wanted to consider. 5 cents per page!
I was only in that group for a year but had to leave due to a corporate move from MN to TX in 1984.
BTW and Off-Topic:
In the following year, I discovered AIM middle of the night when I couldn't sleep.
So turned on the TV and ran across Robert Lichello's infomercial.
I remember being very impressed, but was not going to spend the $300 for the 3 ring binder with 163 pages. I had no idea he had written his much less expensive book 8 years prior!
As it happens, around the same time, my (since deceased) father-in-law caught the same informercial and bought it! On his next visit he handed the binder to me and said this investment program sounds too good to be true, but I can't find the 'fatal flaw'. So he asked me to but I wasn't able to.
I still have those 163 pages!
I guess the rest is history.
Not a lot of buys yet...........
As you see in the UBA picture, a lot of buys in the dollar UBA. However the euro is down vs the dollar and so no buys yet in dollar assets denominated in the euro. That is strange when the assets go down, but your currency is down as well.
At least I have a lot of buys in one of my stocks and this week a 10% buy in my airline. My other stocks are still in their hold zone.
I do not see Kapitulation yet, still have a sea of cash that needs to be utilized by AIM. I have patience and am waiting till the non-aimers are closer by.
Nice to see Grabber is back!
Best,K
Thanks JD, Here's the v-Wave view for the last 3 3/4 years:
It appears the three indexes needed to return to their lows from earlier this year. Unfortunately, the v-Wave doesn't show this as being as favorable as back in June of this year. Still, both short and long term v-Wave are below median at this point. The S&P 500 and the Dow 30 are back to where they were at the start of 2021. The NASDAQ, however, is below its 2021 starting value. That's a "give back" of 21 Months gains for Mr. Buynhold. Mr. Lichello did far better is my guess.
Through much of that 21 month period the v-Wave suggested caution was wise. It was clear that even as the stock markets were rising, it wasn't sustainable. There's some severe pain shown in those index values since the start of 2022. Is that a flood of blood I see in the Streets?
The Advance/Decline ratios for last week's trading was 4.5 down for every stock up on the NASDAQ and 7.9 stocks down for each one up on the NYSE. New 52 Week Lows on the NASDAQ outnumbered New Highs by 10:1 and nearly 20:1 on the NYSE.
Are the markets Kaput or is this Kapitulation???
Best wishes,
OAG Tom
GM Tom and thanks.
Do you still remember how to spell AIM?
Cute Tom.
Personally I entered and filled nearly 30 orders on the Buy side of AIM this week.
I've only had around 40 AIM transactions YTD!
I did start 2 new LD-AIM Programs just this week on AMZN and DRLL.
Have a great weekend!
VWave 3.0*
Suggested Starting Cash Value For New AIM Accounts/Positions
Individual Stocks
High Risk: At or above 51%
Neutral: Between 37 and 50%
Low Risk: At or below 36%
Diversified Funds
High Risk: At or above 34%
Neutral: Between 25 and 33%
Low Risk: At or below 24%
_________________________
Week of September 30th
_________________________
Short Term (18 Months)
Individual Stocks: 25% (Down 17 from previous week)
Diversified Mutual Funds
or Portfolio: 17% (Down 11 from previous week)
__________________________
Long Term (3-5 Years)
Individual Stocks: 42% (Down 3 from previous week)
Diversified Mutual Funds
or Portfolio: 28% (Down 2 from previous week)
Oscillator: -2.03 (Down 2.63 from previous week)
*See posts #44585 and #44588 for Tom's explanation
Hi Steve,
After watching today's market action it would appear you've arrived back just in time to field questions regarding AIM, The Grabber Method.
Personally I entered and filled nearly 30 orders on the Buy side of AIM this week. 12 or so just today. I barely had time to go to my Dr's appointment this AM. Most of those holdings have been hovering just above their trigger prices since June, so it felt good to buy and set new targets for future. I'll be interested to see how this week's trading affects our v-Wave data.
I'm glad to hear the family and your lives continue to prosper.
Welcome back. Do you still remember how to spell AIM???
OAG Tom
I guess The Grabber is Back!
Thanks for the welcome back Jon, Tom & Toof.
A lot has happened since 2019 the last time I was even barely active on the board:
- I retired in January of 2019, ending my 47 year career in the Retail industry, 42 of which were in corporate roles (Merchandising, Merchandise Planning, Allocation and Control and Logistics) for 5 different companies, 10+ years for 4 of them.
My last employer did call me back for all of September, 2020 to help them recover from shutting down over 4,000 stores due to Covid.
- My beautiful wife Nancy was 'retired' in April of 2020 due to Covid. She was close anyway, but we needed to adjust quickly (Medicare, Social Security, etc).
- We now have 3 grandkids, 9, 6 and 2 years old. We didn't get to meet our newest until he was 8 weeks old (they live in Denver). Had to drive 11 hours straight through from Dallas and not come into contact with anyone en route. Their 1st child and Dr. really had them scared.
- Neither of us contracted Covid or any variant. But both of our kids, their spouses and 2 of the grandkids did. Of course all 6 of the adults were vaxxed and boosted (as were we) well beforehand. Our daughter and son-in-law each got it twice (later variants). Everyone is fine now but we're pretty tired of this after 2 1/2 years.
- We downsized last year to a smaller, single story home and are loving it. Lots of Projects done since then but they are tailing off finally. Google Map 25 Victoria Drive in Rowlett, TX. Our new house is directly across the street from the homes on the lakefront (Lake Ray Hubbard). Great, quiet neighborhood too.
- Believe it or not but it took awhile last year to sell the home we had for 32 years. Not to mention editing at least as many years of clutter. (Edit, Then Edit some more, then make another run to Goodwill, Salvation Army or Habitat.....).
So If you're ever down this way, please reach out so we can get together. Probably not going to have another 'Gathering' like the 2 we had over 20 years ago (But would love it if we did).,
Anyway, It's good to be back, and I'll try really hard to stay engaged with y'all. I'm about 500 into the 2000 posts before I catch up.
Hi Steve,
Thanks for recycling that article. I note the iHub post was in April, 2020, so COVID was a big deal then.
Best wishes,
OAG Tom
Great Read!
'The Wizardry of Tom Veale'
Love it!
Grabber
Glad that it is not just me !
I also try to put the orders in GTC plus extensions.
Toofuzzy
Hi Grabber,
Wow, that's a post from 2019! It's good to hear your personal history on LD-AIM.
We've kept LD-AIM alive during your sabbatical here. It's always nice to have you visit, however.
OAG Tom
Steve!
Great to see you AND your posts back on the board. Hope you can stick around. Have always enjoyed and benefited from your insight and comments.
Take care.
Jon
Must have been some great snowball fights beforehand!
Here I am!
But I'm almost 3 years late and a lot of $ short!
Hey Toof.
Why is it that a security will reverse just under where AIM wants me to have a sale?
That has happened to me so many times! But it does seem that as often as not the price momentum runs into the next day, or after hours.
My GTC limit orders are always in effect in pre- and post market sessions.
Hi Tom!
It's been so long since I read your archived bit on LD-AIM, I had to reread it!
Anyway, you correctly wrote that 'The downside is that one can sell out of a holding that has begun a very long and profitable price appreciation'.
I just want to clarify that since I have been running LD-AIM, very few holdings have 'Sold Out'.
Only 1 (HOME) did not have intervening Buys.
1st Program bought @ $5.00, Sold @ $5.82, $6.42, $7.07, $7.84, and $8.56. It only took 3 Weeks!! 40% Profit of $1,996.
3 months later, the price dropped to $5.46, so I started a 2nd LD-AIM program on it. 18 months, 9 Buys and 18 Sells later, it sold out of actual shares for a profit of 62%, $14,016.
3rd Program lasted 6 months before the company went private. +25%, $18,67.
Most programs ended due to Acquisition (eg: SNDK, YHOO, CREE, etc)
And a few due to bankruptcy early on (Hopefully I pick them better now).
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Assistants The Grabber Toofuzzy |
Here's a handy "Quick AIM Calculator" for finding the next AIM directed Buy and Sell prices for your portfolio holdings:
A.I.M. Users Bulletin Board (AIMUSERS): Thanks LC, Now they can use the "calculator" again! (advfn.com)
While the AIM book is no longer being reprinted, it is available from Amazon for their Kindle for $5.99.
http://www.amazon.com/How-Make-Stock-Market-Automatically-ebook/dp/B002VKJ1EI/ref=sr_1_1?s=books&ie=UTF8&qid=1395757939&sr=1-1&keywords=lichello
Mr. Lichello wrote the book on AIM in 1977. In the mid-'80s he put an infomercial on AIM on late night TV and attempted to sell his workbook and audio tapes.
(1) How To Make $1Million In The Stockmarket Infomercial - 1985 - YouTube
It's a reasonable review of the AIM method for those who are unfamiliar.
Run A Successful Equity Warehouse
Welcome to the AIM Users Bulletin Board. This is the thread to post your thoughts, questions and comments on the use of Robert Lichello's Automatic Investment Management for handling the risk of being involved in the Equities markets.
The AIM strategy gives the user LIFO gains of 20% minimum if the method is followed "by the book." It is ideally suited to those seeking long term investment growth while managing the risk of being invested.
Thoughts on being a successful Individual Investor
I wrote this book review a long time ago. It's a trader's interpretation of
Sun Tzu's "Art Of War." I related it to AIM as best I could.
------------------------------------------------------------------------
Mr. Lundell says, "Today's financial markets are the last bastion of unabashed conflict.....
To participate, you must be your own general, devising a strategy, gathering information, executing your plan, and adapting to the situation."
How can we use AIM and the v-Wave for strategic and tactical planning to carry out Mr. Lundell’s requirements to participate in the Equity Markets?
"Be your own general"
You are in charge. You are responsible. When you win, you benefit. When you lose, only you are to blame.
a) Broad trends persist. Discover them. They will survive boom and bust.
b) Don't contemplate engaging in war while beholden to another. They could become your ruler!
To me this means "Stay away from Margin Buying unless you are certain of victory."
c) Establish and maintain a "Baseline of Survival" for your command.
This is the "income" side of my overall portfolio.
d) Know that reality is governed by Darwinism; Long Term Survival belongs to the fittest.
"Devise a Strategy"
Our strategy is to sell inventory into market strength and to buy into market weakness. Robert Lichello's AIM algorithm provides us with a systematic approach to follow that employs this strategy.
a) Sell quality merchandise to all those willing to pay.
b) Buy quality merchandise when the price offers reasonable hope to resell at a profit.
c) Let the allocation of resources and inventory be governed by the course of the market and AIM's guidance.
"Gather Information"
Today there is no excuse for not being informed.
a) Differentiate between information VOLUME and QUALITY.
b) Differentiate between FACTS and OPINION.
c) Find good sources of judgement where you cannot act as judge.
d) Information is trusted only when provided by those proved trustworthy.
"Adapt to the Situation at Hand"
The v-Wave measures general U.S. Market Risk (and may be sensitive to world market risk) from low to average to high. This helps you gauge the situation by:
a) Gauging your initial cash reserve requirements on new investments
b) Gauging your on-going cash reserve requirements on established investments
c) Judging whether to establish a bias for accumulation or distribution
d) Possibly starting no new AIM accounts when the v-Wave is showing High Risk
e) Possibly ignoring all AIM Buy Signals during v-Wave High Risk events.
f) Following all AIM buy and sell signals during v-Wave Average Risk events
g) Possibly ignoring all AIM Sell signals during v-Wave Low Risk events
h) Re-assessing your "Baseline For Survival" at times when AIM has your account heavily in Cash
i) Always attempting to beat measured inflation by 5 basis points minimum after all taxes and living expenses are paid. If you do this consistently, in good and bad markets, you will be winning long term
j) Possibly using "vealies" when your positions are cash rich relative to the v-Wave. Limiting supply helps to keep Momentum player’s Demand high.
"Execute your Plan"
Set the plan in motion; know that it takes time for realization. Follow the plan without hesitation allowing the goals to be realized. The strategy is sound so execution is all that is required.
a) Buy when the plan says
b) Sell when the plan says
c) Be very patient when no buy or sell signals are being generated
Reading Mr. Lundell's interpretation of Sun Tzu's work will help you focus on your own plan. It will arm you with knowledge of what others not using AIM are doing in the market. Understanding Short Term Trader's strategy and tactics is like having a spy in the enemy's camp. AIM users can profit by knowing just how these people think and act. AIM acts as almost a mirror image of what goes on in a trader's mind.
-------------------------------------------------------------------------------------------------------------
The v-Wave........
Mr. Lichello used fixed cash starting levels; first it was 50/50 then 67/33 and in the last edition of his book 80/20 for the Equity/Cash ratio. This "one size fits all" approach is like a broken watch that shows the correct time twice a day but is wrong the rest of the time!
Minstrlman, a regular contributor here, helped gather data from Value Line and formed a highly capable risk-cash indicator for our use. Since then, J Derb continued his work each week. As an adjunct to the AIM methodology we now have a Cash Indicator which helps guide our starting and ongoing Cash Reserve level of AIM relative to measured market risk. It can be used as a general market barometer or specifically with the AIM method. The v-Wave (or VW) is derived from the Value Line "Appreciation Potential - Next 3-5 Years" (VLAP) indicator shown weekly in their Summary and Index Section for their 1700 stock edition. Looking back through V/L's history we find the peak Appreciation Potential occurred 12/23/1974 at +234%. Our continuous database starts January of 1982 and we scaled our "zero cash" to the market risk low point of early that year. We take the VLAP and manipulate it to get an indication of how much cash should be reserved for diversified mutual fund AIM accounts. It should be multiplied by your stock or portfolio's BETA to get the cash reserve level of less diversified or more aggressive holdings.
v-Wave Weekly Cash Reserve Indicator For AIM Users
Current years of the v-Wave:
For diversified portfolios the Median value for the v-Wave is 29.5%. High Risk is 34% cash or higher for individual company stocks. Low Risk is 24% cash or lower.
To get a more proper cash level for individual company stocks multiply the current "Diversified" value by 1.5. This gives us 51% as the high risk threshold and 36% for the low risk boundary.
Looking at the cumulative risk of the v-Wave gives another perspective:
Cumulative v-Wave is calculated by taking each week's v-Wave Stock value, subtracting the median value from it and adding it to the previous total.
Significant historical events are shown nicely here and the v-Wave's response at those times.
v-Wave Calculations can be found at #30219. The data are a work-in-progress for now.
TooFuzzy provided us with a handy "Quick AIM Calculator" Here's a link to that page:
A.I.M. Users Bulletin Board (AIMUSERS): Thanks LC, Now they can use the "calculator" again! (advfn.com)
(follow the link on the above page)
AIM has a predictable pattern of "cash burn" in a declining market. Depending upon the SAFE settings AIM will generate new buy orders sequentially as share prices decline. It can be helpful to know in advance about how deeply AIM is going to draw down one's cash reserves. This link is to the "Cash Burn" AIM page. It shows various end points based upon the starting cash reserve level. Here's a link to that page:
"" rel="nofollow noopener noreferrer ugc" target="_blank">http://www.aim-users.com/cashburn.htm"; rel="nofollow noopener noreferrer ugc">A.I.M. Cash Burn Rate (archive.org)
Best wishes,
Old AIM Guy
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