Friday, December 12, 2014 8:05:33 PM
For a similar period as Jaiml's for OVTI, that spreadsheet is showing figures of
when VFISX is used for cash
If you scan down the trade $ amounts column you'll see the + (buy) and - (sell) trade amounts. Ocroft's idea is to accumulate all AIM buy trades and only actually buy after AIM stops buying. For the sequential buys shown in that spreadsheet you can scan across and see the price that all of that $$$ amount of buy trades would have bought more stock at. Typically when there are sequential buys lumping them all in at the price after the last buy trade was indicated by AIM will average in at a better (overall lower) price. In some cases - typically when just a single buy trade is indicated having waited results in buying at a worse (higher) price. Broadly however it would seem that the cost of buying single trades at often higher prices than had you religiously followed AIM is more than compensated by buying larger amounts (several buy trades in a row) at a lower overall average price when several sequential AIM buy trades occur in a row. That's also less risky as cash is preserved for longer before being deployed.
when VFISX is used for cash
If you scan down the trade $ amounts column you'll see the + (buy) and - (sell) trade amounts. Ocroft's idea is to accumulate all AIM buy trades and only actually buy after AIM stops buying. For the sequential buys shown in that spreadsheet you can scan across and see the price that all of that $$$ amount of buy trades would have bought more stock at. Typically when there are sequential buys lumping them all in at the price after the last buy trade was indicated by AIM will average in at a better (overall lower) price. In some cases - typically when just a single buy trade is indicated having waited results in buying at a worse (higher) price. Broadly however it would seem that the cost of buying single trades at often higher prices than had you religiously followed AIM is more than compensated by buying larger amounts (several buy trades in a row) at a lower overall average price when several sequential AIM buy trades occur in a row. That's also less risky as cash is preserved for longer before being deployed.
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