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Created: 01/29/2002 04:28:34 PM - Followers: 295 - Board type: Free - Posts Today: 1

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.

Here's the Historical v-Wave during various times since 1982:



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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Post Subject
#44119
AIM has a predictable pattern of "cash burn" OldAIMGuy 01/28/2020 07:30:44 PM
#37762
Hi TFO, My apology for directing that last OldAIMGuy 06/05/2014 12:07:49 PM
#37457
Re: Newport AIM software ls7550 12/28/2013 01:56:43 PM
#36711
Thanks LC, Now they can use the "calculator" again! OldAIMGuy 06/04/2013 09:01:59 PM
#36709
www.aim-users.com This is a copy of www.aim-users.com that lostcowboy 06/04/2013 01:56:02 PM
#30219
Hi Glen, RE: Calculating the v-Wave................... OldAIMGuy 05/26/2009 03:32:16 PM
#46138
Oh my! 22 years ago! The Grabber 09/29/2022 06:33:26 AM
#46137
Yes Standard AIM is standard AIM no matter how Toofuzzy 09/28/2022 05:55:25 PM
#46136
Thank you Toofuzzy for offering up these great suggestions. old_john 09/28/2022 03:38:03 PM
#46135
Hi OJ, Re: ............position that is closed after OldAIMGuy 09/28/2022 10:32:16 AM
#46134
Personally I find $20,000 with standard AIM is Toofuzzy 09/28/2022 02:36:37 AM
#46133
Hi John.. I’ve been there too! When that occurs JDerb 09/27/2022 10:33:46 PM
#46132
Hi Jon old_john 09/27/2022 09:26:38 PM
#46131
Hi Tom, thanks for this great explanation. old_john 09/27/2022 08:56:57 PM
#46130
Hey Jake. The Grabber 09/27/2022 01:12:56 PM
#46129
Steve (The Grabber) - I hope you'll do this. Make It Jake 09/27/2022 10:16:38 AM
#46128
Good Morning Toof. The Grabber 09/27/2022 08:34:33 AM
#46127
Hi Steve Toofuzzy 09/26/2022 08:55:49 PM
#46126
Hey Toof. The Grabber 09/26/2022 07:42:52 PM
#46125
Well Tom. The Grabber 09/26/2022 06:38:24 PM
#46124
After a hectic week last week I've given OldAIMGuy 09/26/2022 02:23:33 PM
#46123
Hi Grabber, OldAIMGuy 09/26/2022 08:45:19 AM
#46122
Oops! I'm an Old Fart, but you're an Older Fart! The Grabber 09/26/2022 07:56:36 AM
#46121
73!!!!! OldAIMGuy 09/25/2022 08:45:57 PM
#46120
Loved it! The Grabber 09/25/2022 02:27:20 PM
#46119
Hi Tom: The Grabber 09/25/2022 02:25:44 PM
#46118
Happy birthday to OAG ! karw 09/25/2022 01:28:48 PM
#46117
Purchasing Power OldAIMGuy 09/25/2022 01:14:23 PM
#46116
JD, OldAIMGuy 09/25/2022 01:06:46 PM
#46115
Grabber, How's that Day Trading going since then???!!! OldAIMGuy 09/25/2022 12:51:43 PM
#46114
Hi O.J., Re: Rolling an AIM engine into OldAIMGuy 09/25/2022 12:40:13 PM
#46113
HAPPY BIRTHDAY, OAG! JDerb 09/25/2022 12:08:36 PM
#46112
RE: Black Monday The Grabber 09/25/2022 11:25:36 AM
#46111
That's a great anecdote Tom! The Grabber 09/25/2022 09:46:19 AM
#46110
Me too Jon! The Grabber 09/25/2022 09:32:35 AM
#46109
I was one of the folks from DFW The Grabber 09/25/2022 08:50:18 AM
#46108
My stocks karw 09/25/2022 08:11:36 AM
#46107
Greetings aimers. No recent buys or sells old_john 09/24/2022 11:29:22 PM
#46106
Hi Steve, Re: Off Topic AIM....... OldAIMGuy 09/24/2022 03:29:37 PM
#46105
Hi Karl, Re: Cash utilization and current Market conditions....... OldAIMGuy 09/24/2022 03:20:42 PM
#46104
Value Line The Grabber 09/24/2022 02:53:33 PM
#46103
Not a lot of buys yet........... karw 09/24/2022 11:41:42 AM
#46102
Thanks JD, Here's the v-Wave view for the OldAIMGuy 09/24/2022 09:38:29 AM
#46101
GM Tom and thanks. The Grabber 09/24/2022 07:26:31 AM
#46100
VWave 3.0* JDerb 09/23/2022 08:37:38 PM
#46099
Hi Steve, OldAIMGuy 09/23/2022 07:58:28 PM
#46098
I guess The Grabber is Back! The Grabber 09/23/2022 05:17:51 PM
#46097
Hi Steve, OldAIMGuy 09/23/2022 01:56:04 PM
#46096
Great Read! The Grabber 09/23/2022 12:10:50 PM
#46095
Grabber Glad that it is not just me ! Toofuzzy 09/21/2022 11:50:42 PM
#46094
Hi Grabber, OldAIMGuy 09/21/2022 08:52:54 PM
#46093
Steve! Great to see you AND your posts back JDerb 09/21/2022 08:13:57 PM
#46092
Must have been some great snowball fights beforehand! The Grabber 09/21/2022 06:19:53 PM
#46091
Here I am! The Grabber 09/21/2022 06:15:31 PM
#46090
Hey Toof. The Grabber 09/21/2022 05:55:47 PM
#46089
Hi Tom! The Grabber 09/21/2022 03:42:17 PM
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