A.I.M. Users Bulletin Board

[The Grabber]

Hello everyone:

OT: We had severe weather last night here in the Dallas area. Our power just came back after having been out since Midnight (15 hours!). We were about to go and buy ice to pack everything from our freezers into coolers, but lucked out.

BOT: In the candlelight, I was pondering my old idea of developing some mathematical (read not subjective) method for determining more optimal AIM settings. I was reading Don's and Tom's Narratives on use of Zig-Zag over on the ETF board, and I got to thinking:

- What is "Magic" about the 26 week moving average? It pops up in many charts here and seems to be some kind of standard.
- Could some method be used to measure percentage movement up and down from that level? And then the relative difference between these 2 be used to 'shift' the 'Sum of Settings' from center more towards the Buy or Sell sides? I'm thinking of slope or trend here.
- And, should the value of 26 be factored in somehow? So if one were to use the 13 week MA, then the result might be different.
- Also, What is "Magic" about the total 30% range? Given a visual comparison of # of peaks for a 20, 25, 30, 35 set of ZZ settings, one certainly could pick from these, but that then tends to be subjective.

I will certainly give this some more thought, and I hope I'm not spoiling anyone's BBQ tomorrow, but I always seem to need something for 'background' processing when slathering sauce or brushing the pool.

Regards to all, Steve