A.I.M. Users Bulletin Board

[SFSecurity]

Hi lostcowboy, Thanks for pointing out the book. Alas, Kindle doesn't let you print it out when you read it on a computer, however, if you go to:

https://sites.google.com/site/professionalinvestmentcoach/home/downloads

you can download the tables and see what they say. My first impression is that his PIC approach is basically the same as AIM except that his buy/sell price is roughly double AIM's, that is to say Ngu's sale at 150% and buy at 70% as opposed to standard AIM at approximately 125% and 83%.

Starting with a $10,000 Portfolio Control and a minimum % of share for a transaction at 10%, if you raise the sell safe to 23.5% and the buy safe to 33% you get (using the online calculator):

@ Stock Value Above $15038 
 Min Sell Order Size $1504 
 Min Sell Price $15.04 
 Min # Shares Sell 100 
  
 @ Stock Value Below $6993 
 Min Buy Order Size $699 
 Max Buy Price $6.99 
 Min # Shares Buy 100

Close enough for me.

It seems to me that this approach, higher buy/sell safes may be a good choice for the very volatile 2x and 3x ETFs. It slows down the number of transactions.

The one real difference is that Ngu has you trade on the same day of the month when the price is above/below his calculated price as opposed to AIM trading when the price hits the mark based on the buy/sell price. If one did what what Ngu suggests, trade on the same day of the month, and raised the buy/sell safe to his level, I suspect the results would be close to the same as his.

Best,

Allen