Good morning Toof and Vitali, Re: AIM Settings........
I make the Minimum Trade Value a percentage of Portfolio Control. SAFE
is just SAFE, wherever I've set it. The effect is to make the Buy and
Sell sides of AIM symmetrical in dollar trade value as minimums. I think
it helps to think of SAFE as "Resistance" to buying or selling.
When I started AIM back in the late '80s I used a minimum share count
for trading. However, this means we buy fewer dollars worth than we
sell. The discount to the first buy is slightly less than what I
currently do. Discounts to sequential buys were smaller the way I used to
do it, too.
With my current method, the minimum dollar trade amount increases with
each buy because Portfolio Control increases with each buy. Again,
there's a slight increase in discount between sequential buys with my
current practice.
Portfolio Control starts as a constant and increases in proportion with
each buy cycle. This meant I'd be basing my minimum trade value on a
more relevant number. The effect on share count minimum trades is
roughly Sell 5% of shares or buy 6% of shares (sell 10% of shares or buy
12% more shares).
I liked the value symmetry - no other particular reason. If I'm willing
to sell $X,000 of stock/fund why not be willing to buy $X,000 more of it?
Best regards,
OAG Tom
Buy from the Scared; Sell to the Greedy.....
