A.I.M. Users Bulletin Board

[Conrad]

Thanks Ray,
From this point on I can "Bone up" on what he actually said(other that what I remember )

I must have missed that first Ocroft post.
What he stated here does not seem to be correct. . .unless he actually executed "virtual buys" on the AIM Spread to keep a record of the accumulated buys. That way he would actually get a rising PC. . . That is not what I remember he was doing. . . because I did not read this post.

Assuming that is what Ocroft did. . .what you call "synthetically" following the stock with the AIM BTB Algorithm, the he would "see" indeed the PC rising as price declined far enough.

But even so, if the price of the equity stayed constant then the PC would also stop rising. . . If he then would buy the full amount of accumulated shares he would expose himself to a further decline in price and THAT Oroft wanted to avoid.

I remember that he applied a Reversal Indicator. . .the price would have to start rising by some fraction before he would buy. . .I remember that part distinctly. . .and it would be a good strategy.
If I am wrong on this then it is a mystery where I got that idea from.

For some reason I seem to remember that he bought the declining stock for 50% when the price was simply attractive at some point and then IF a decline would occur he would wait for a Bottom and a Reversal, and then sell at a profit level he was satisfied with on the upside.

In any case the exact details are less important than the general idea of what he was doing. He was happy doing what he did, as he fared well with it. . .He wrote that in any case.