A.I.M. Users Bulletin Board

[AIMster]

The reason I ask is because I have recently been rereading Lichello's book and the thought occurred to me this morning that I rarely see AIM-HI mentioned on this forum.

Hi, Ray,

In the range of models for Automatic Investor, Mark Hing's got the AIM-HI settings described as a "bullish" configuration, with Lichello's original 50/50 described as "Conservative." Such a setting (AIM-HI) would give you a need for about a 40% zig-zag cycle 10% buy SAFE + 10% sell SAFE + 10% buy minimum & 10% sell minimum. Given that volatility between mid 2003 and mid 2006 hasn't been so volatile, such parameters would give very few AIM sells or buys.

For example, using the 40% zig-zag on PCU, the Southern Copper Co. gives us this:



On the other hand, using the 30% (10% Buy and sell SAFE each + 10% for both minimum transactions combined at 5% each) gives us this:



So, more AIM cycles at the lower percentage versus the potentially bigger gain of the larger hold zone. I suppose I can run both through AI's historical testing and see where we'd end up.

Best,

AIMster