TooFuzzy,
You may remember some of Ocroft's original postings. He wrote that he would "AIM" the stock from the most recent "high" (in the past), but not purchase until the stock reversed that trend enough to "void" the Buy signal. He would then buy all the $ worth of stock that had been recommended during the down trend.
My assumption was that the original 50% of the account that wasn't used for the Core Holding would still be available if the stock resumed its downtrend. If you follow this procedure, you have two advantages that I see: 1) It will be a stock that actually fell in price enough to make purchases, so you aren't "wasting time" waiting for the price to drop enough to generate signals; and 2) You will have a much lower average price for potential gains. If you are selective in the stocks (ETFs) you consider, you will have a position with a solid Core Holding, larger than what it would have been by buying at the high. And you are doing this in Real Time because the downtrend would have already been happening.
He was not looking to AIM a stock, but simply using AIM to get him into a potentially profitable trade. You, on the other hand, would be able to AIM the position from there.
Respectfully,
Bob
AI
