A.I.M. Users Bulletin Board

[jibes]

Jack, Conrad and All.

I'm glad you brought this up. I have been running tests on the progressive factors of DDCA and have concluded that it is no good. The concept seemed to make sense and it did work on some stocks but overall it was a dud. I did run tests on several low priced stocks and came to the conclusion that the factors should be set to 0.93 Sell and 1.35 Buy. These seem to work quite well.

On a head to head weekly one year test with AIM on the same group of low priced stocks DDCA and AIM were quite similar. AIM did better but at a cost. Three of the stocks required additional Cash infusion of around $16,000 each on an initial portfolio of $10,000! I would be very wary of putting this much cash into these issues. DDCA of the same stocks did have some that got into the red cash wise but only to the tune of $2000 to $3000. This I could live with if I were doing several stocks. If I limited AIMs buying to neg $2500 DDCA did better.
AIM has better absolute rules than DDCA. The uncertainty about the Factor settings requires caution. I hope I didn't lead anyone astray.



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