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I created a Quick AIM Calculator in Excel format. It gives me the same results as the online calculator. The spreadsheet allows you to enter parameters ONLY in those cells shown in RED. All the formula based cells have been protected to avoid accidental overwriting.
I have placed the file in my Dropbox if anybody wishes to download it. The Excel file has been zipped, so you will need to unzip after downloading before using it. I had to zip the file, otherwise it would just launch the file in Dropbox and not allow you to download it. At least that has been my past experience. After downloading, just double click on the file and you should be able to unzip it.
https://dl.dropboxusercontent.com/u/10141310/Quick%20AIM%20Calculator.xls.zip
Let me know if there are any questions or problems.
Lou
Tom, thanks for explaining LD AIM. Interesting.
Regards, Lou
What is LD-AIM?
Thx
Tom/Toofuzzy…
Thanks for the info on GTC limit orders. I'll be learning as I go, but your feedback has been invaluable to get this newbie started. I know it will take awhile for me to see results, but if it works as I hope, I will gradually allocate more of my assets to AIM programs!!
Thanks. Lou
Thanks to ALL for helping me get grounded in AIM fundamentals.
I started my first two separate AIM accounts today using Vanguard ETFs. I'll monitor them and see how it goes. I'm looking forward to the journey.
I know my next target buy and sell prices and the number of shares, based on the Quick AIM Calculator. What types of Buy and Sell orders do people use to trigger transactions automatically when the price targets are met? Do people place GTC orders, and if so, which flavor? I assume you'd place two GTC orders, one at the buy target, and one at the sell target?
Or, is it best to check each ETF manually at the same time once per month? Seems you might miss some buying and selling opportunities when checking manually.
Lou
Tom…excellent explanation on the use of the ZigZag and how you set Safe and Min Transaction levels accordingly. It was very clear. Examples like you provided are always of great help.
I think I have learned enough to stick my toes in the water and will probably start one or two AIM programs this week. I need to check a few things with Vanguard first so I understand their ETF trading policies, any limitations, and whether I can buy and sell Vanguard ETFs not listed on their website, etc. Since all my investment money is there, it is easy and convenient to stick with Vanguard.
I'm excited about getting started.
Adam, thanks for pointing me to the ZigZag feature on StockCharts.
Regards,
Lou
Thanks, Adam…and Happy New Year to you!
Thanks for the (V-Wave/1.4) for starting cash amount. Very helpful. I've been running some simulations using the Vanguard Energy ETF (VDE) and I found that a lower initial cash balance worked well. That ETF has some good ups and downs. I created a Numbers Spreadsheet that has a built in Hold and Market order calculator to make it very convenient. I still need to debug and make sure it is accurate.
I'm still trying to figure out if I should stick with 10% Buy and Sell Safe and a 5% Minimum order on ETFs. Seems like the trades would be few and far between, but I am totally new, so I may be wrong. Setting a minimum trade of 5% or so makes sense to me.
Would ETFs with less volatility and amplitude generally do better with smaller SAFE values? What procedure might one use to set SAFE levels, or is it best to stick with standard Safe values?
Thanks for the excellent feedback. Much appreciated. Here's to a great 2017!
Lou
Tom,
I read Merriman's UBH link and found it very good. He mentioned a number of Vanguard ETFs that could be used with his strategy and I was surprised many of them are NOT listed on Vanguard's own website. VIOO (SmallCap 600) is one example. But, that ETF IS being actively traded. There are quite a few other Vanguard ETFs in the same boat.
I was trying to decide which ETFs to AIM, whether sector or style, when I ran into this situation. I'll contact Vanguard when they open Tuesday, but I was wondering if you can shed any light on this. I wonder if Vanguard will let me trade these "unlisted" funds.
BTW, where can I find the most current vWave recommendation?
Thanks, Lou
Tom,
Thanks for the great information. I looked over the UBH portfolio and also your AIM graphs. I was curious why you had a Buy Safe of 0 on many of your AIM programs? I assume that triggers faster buying on the way down. Also, it appears many, or perhaps all, of your programs start with less than 50% cash. If you start with 70% stocks and 30% cash, do you use the same rail when adding money to that account?
Have a Happy New Year and thanks for the help. I am hoping to pull the trigger in January some time. I'm still getting my ducks in a row and trying to learn before I leap.
Lou
Toofuzzy…
Yes, my spreadsheet calculator works fine. I checked it against your calculator, and against Lichello's chart on page 64 of the fourth edition. (This is the extreme example where the price goes from 10 to 8 to 5 to 4 and back up again). I noticed something interesting in a rapidly falling market. When using the Hold Zone Calculator, after the market hits $4/share, the entire hold zone is above that price. This would trigger a 2nd buy at $4/share the next month if the market stood still. I thought that was very interesting. The buy was smaller, but there was still a buy.
I hope you have a Happy New Year. And congratulations on the awesome returns for 2016. Impressive.
Lou
Thanks, OldAIMGuy.
Lots of good information. It'll take me some time to go through all that stuff, but I just wanted to say thanks up front.
I just set up a brokerage account at Vanguard for my Roth IRA. Initially, I think I will probably just AIM this one account, until I get a better feel for AIM. Then, perhaps I will add some of my larger accounts later.
Thanks again…I look forward to reading through the UBA material.
Lou
Toofuzzy,
Thanks, but that didn't work for me. I tried highlighting, copying and pasting whole page, text only, tables, etc, a few different ways, but it just copies the forms, text, etc and displays them in the body of my email. No machine language that I can see. I'm on a Mac using a Safari Browser. If I need to paste my email into a file, I don't know how to do that.
I created a Numbers spreadsheet (Mac spreadsheet software) to calculate the Hold Zone, using the formulas Tom had in one of his pinned posts. It gives me the same Hold Zone numbers as your calculator. But, I haven't worked on the Market Order part yet. If I get that done, I'll have a spreadsheet on my computer that I can use any time, so no problem.
Lou
Thanks again, Toofuzzy.
I am glad you were able to find the calculator and the site worked. I suggest downloading to your computer by cutting and pasting to an e mail. Then open the email and copy it to a file. I have found that worked. Then if the site is down you will have it.
I didn't really understand how to do what you suggested above. I copied the calculator website link and pasted it into an email to myself. But I wasn't clear about "copying it to a file". I assume you are trying to make it possible for people to have the calculator available locally on their computers in case the internet or the calculator website are down.
Since I will probably stick with Vanguard, I was looking at their Energy ETF (VDE) and their Materials ETF (VAW). They seem to be the two more volatile Vanguard ETFs. I wouldn't mind owning their SmallCap Growth ETF (VBK), but it didn't seem to be as volatile. I wouldn't mind owning any of these long term.
Any comments or advice on these ETFs, since you are a long time AIMer?
Just curious, approximately what percentage long time AIMers have in Cash at this point, with the market having gone up for quite awhile. I know that will vary depending on the time invested, the security, and the AIM settings. Just trying to get a feel.
I think I probably have enough information to get started. I just have to check with Vanguard to make sure my account is set up properly to allow trading, since I've been doing only Mutual Funds for quite awhile.
Thanks again for your excellent responses.
Lou
Thanks, TooFuzzy! Great responses and very helpful to this newbie.
I may start out with a modest AIM program to earn my wings. I have about $36,000 in my Roth IRA.
More questions…
1. I will probably start out with a single ETF (probably Vanguard, since I have all my money there). Or would it be better to have two or more ETFs? I have $36,000 in this particular account.
2. Do you use a separate AIM program for each individual ETF?
3. Is it riskier to own just one single sector ETF? They seem to be a bit more volatile and would probably generate more action. Or would it be better to start out with something like an SP500 or a Small Cap Growth ETF?
4. It looks like many months could pass before placing any trades unless the market is really advancing or declining. I played with the Quick AIM Calculator and it seems to require pretty big moves with 10% safe and 5% min order sizes.
5. How many trades per year might be typical with one of the above ETFs. (I know, probably varies like crazy, but I'm just trying to get a feel here).
6. I'm guessing it might take a few years to see AIM make some real headway, since it is the repeated buying low and selling high that makes it fly. Is that correct? Seems like it could lag behind during the first year, especially in an UP market.
Thanks again.
Lou
Hi. I'm new here. I've read Lichello's AIM book, latest edition, but I don't know where to start. I'd love some guidance and will give you some info about me that may help you with better answers.
I'm 66 and retired. I live off my investments and Social Security and do NOT have any pension. 80% of my investment assets are in IRAs, 20% in a taxable account. All my investment assets are with Vanguard, and I currently have 55% stock mutual funds, and 45% bond mutual funds, which I rebalance periodically. My average return over the last 10 years is 6%, but I live off about 4%, so my portfolio has grown slowly be surely. As you can guess from my allocation, I tend to be cautious and conservative, since my investments are my primary source of income.
I was thinking of using one of my smaller IRAs to start an AIM program. The PE ratio of the SP500 seems pretty high, which makes me a bit nervous, so I don't know what would be a reasonable starting balance for stocks/cash. I'm inclined to use ETFs over individual stocks. I will need to do better than 6% average going forward because I will soon need to take RMDs from my IRAs, which will dramatically increase my tax bite, causing my cost of living to increase.
Can someone help me get started? Here are some newbie questions.
1. Do I need software? If so, which is best? (I'm on a Mac)
2. Starting Stock/Cash balance in today's relatively pricey market?
3. Which AIM variant is recommended? AIM-HI?
4. Suggested ETFs that will work well with AIM. I prefer Vanguard, since I have no fees, but if they are not the right vehicle, I will consider going outside Vanguard.
5. Where do I stash cash in these low interest rate times. Money Market, ST Bond Fund?
6. Recommended frequency…bi-weekly, monthly, bi-monthly, quarterly?
7. I assume an IRA is the best place for AIM, due to tax deferral. What about my taxable account.
8. Have you long time AIMers done well compared to the market?
Sorry for all the questions/ I looked around on this website, but got a bit lost as to where to start. I appreciate any help you can provide to get me started.
Lou Dina