A.I.M. Users Bulletin Board

[SFSecurity]

Hi Gang, I've been reading "Channels & Cycles: A Tribute to J.M. Hurst" by Brian Millard and noticed in the Preface a list of 5 main concepts of Hurst, two are particularly relevant to AIM thinking.

1.Maximum profits are obtained from shorter trades

and

5. The ideal buying point is when several such cyclic components are reaching their low points

These are based on Millard's reading of Hurst's book "The Profit Magic of Stock Transaction Timing." Prentice Hall, 1966 first edition.

If one takes Lichello's example on pages 64-71 of the 3rd edition and starts at $4 instead of $10 and the then standard 50% reserve cash, 10% buy/sell safe and 10% minimum shares traded, one runs out of reserve cash in 3 years and 4 months but is up in value 533% as opposed to B&H break even. If, however, one uses 80% reserve cash one would be up 928% in 4 years 11 months while B&H would be up 25%.

Using Lichello's original buying in at $10 one would have gained 444% in 3 years and 4 months. If you have any ideas, please let me know.

Oddly the standard spreadsheet does not match the listing in the book, I'm not sure why. I'll have to look into this and see if I can figure why. I suspect it is because he includes interest on the reserve cash and the spreadsheet does not.

It is interesting how similar thinking, although different approaches, really come down to very similar concepts. I went to an introductory workshop on options put on by TD Ameritrade a few weeks ago and one of the points that was emphasized was buy low, sell high, one half of what AIM helps you do.

Best,

Allen

P.S. A PDF of Hurst's book can be downloaded from: http://www.forexmt4.com/_MT4_Systems%20Documentation/J.M.%20Hurst%20-%20The%20Profit%20Magic%20of%20Stock%20Transaction%20Timing.pdf