A.I.M. Users Bulletin Board

[jibes]

Hipstercampi

You might want to give my Aim-like DDCA PPTM a look. It does much better than AIM on the down side. Aim is good but it does require much more attention or cash on major declines.

Though my website does not show it yet I have modified DDCA PPTM to 15% rather than 20% min moves for market orders up or down. This is still a personal choice and does depend to some extent on the issue traded. A stodgy old blue chip would need some adjusting.
The new and exciting change is it's now Progressive!. Let me explain.
When starting a DDCA PPTM program, the factors are set to 60% for a sell and 70% for a sell. Note this is the Factor % not the price change %, the price change % is 15%. That is a 15% move from the last price to trigger a buy or sell.

After the first sell for example the factor is raised to 90%. After that the next sell is a 120% factor and so on. If you get a buy on the way up then it's factor is still only 70% but if there are two buys in a row then that new buy is 100% and the sell factor is reset to 60%. As of this moment the factors increment by 30 points.

More simply put keep raising the factor on each subsequent move in one direction until a move in the opposite direction takes place. If the opposite move is enough for two transactions then the preceding moves factor is reset to it's starting value. If a move is only interrupted once resume with the same factor value that was in effect before it was interrupted.

So:

move up 1st time: Factor 0.60 X 15%
15%
move continues: Factor 0.90 X 15%
30%
move continues again: Factor 1.20 X 15%
45%
move down buy: Factor 0.70 X 15%
30%
move back up sell: Factor 1.20 X 15% (again)
45%
move continues up : Factor 1.50 X 15%
60%

so on and so forth.
Opposite true for down side moves.

The logic behind this is that on a good rally or decline I thought it would be better to get a higher percentage if it was a genuine rally other than just a jiggle. And if after a rally the price moves down why sell so much near the top of the move if the price was going to decline from there. On the other hand you would like to buy something in case it was just a small pull back. I also biased the factor to the buy side, 70% vs 60% for sells. just to help hang on to shares a little longer in case of a steep rally.

I ran a test on ADSX with regular DDCA PPTM at 20% for one year and managed to garner 100% return. I did again with DDCA PPTM Progressive at 20% and got a 200% yield!

I decided to go with 15% in the end because I would get more hits and more opportunities to get moves in the opposite direction than that of the prevalling trend . This may or may not be a good idea in the long run but it's what I'm doing for my personal account. Anyway I have not had time to check the validity of this theory since it's summer and other things are pressing at this time. If anyone wants to run some tests feel free.

Jibes
TrendSeekers at:
http://jibes0.tripod.com/trendseeker.html