Hi Allen, Re: Sell SAFE set to Zero............
Generally my buy and sell SAFE settings never get changed. However, I do more than just set SAFE. It is important to gauge and control Cash build-up in an AIM portfolio as well. Those long upward trends can raise cash to unwarranted levels if we don't do something to control it.
I let my cash rise to a level that my risk gauge suggests is appropriate for current market conditions. I don't force the cash, I let AIM do its selling up to that market risk suggested level. When the cash is very healthy, then I can afford to let the equity risk side increase slightly in place of selling. I keep the cash reserve at around + or - 2% of what the market risk level suggests. If market prices keep rising, then the cash gets diluted to the point that AIM can again sell. That brings the cash back to an appropriate level relative to market risk. (this activity is tongue-in-cheek called a vealie) Add to this a cash spending control rule and the more limited cash usually lasts through most cycles.
If you should decide to change SAFE periodically (not recommended) I suggest you document the "why" of the decision at the time. Then you can go back and review those decisions at a later date. Toofuzzy would say that emotions would cloud our decisions at exactly the wrong time. I think Mr. Lichello would agree.
I tailor my SAFE to the type of investment based upon historical price activity. Generally I've been lucky and guessed pretty well. Years, even decades, have gone by with no changes to the basic settings. I know my settings and methods won't completely protect me from Black Swan Guano hitting me now and again, but I'm okay with that. The procedures do manage more typical market cycles with aplomb.
