A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi N_GA and welcome, Re: Cash for AIM accounts.............

In addition to TooFuzzy's reply you might want to look over this page:
http://web.archive.org/web/20120610011525id_/http://www.aim-users.com/cashburn.htm

It shows how deep a sustained market decline can go before AIM (with traditional settings) will run out of cash. This will help you evaluate your current cash holdings relative to potential market retracements. For instance, if you start with a 20% cash position, you'll run out of cash when the investment declines 22% with 5% minimum trade size. If you start with 33% cash the price can decline 30% and with 50% starting cash you'll run out at a 44% decline in share price.

You'll have to look back to around 2017 thru 2019 for a market decline that is more 'usual' than the C-19 Pandemic. Then take each of your holdings and see how deeply they declined through the end of 2018. Then compare those declines to the Cash Burn chart to see what cash level would have sustained buying throughout.

Hope this helps,
OAG Tom