InvestorsHub Logo
Followers 0
Posts 52
Boards Moderated 0
Alias Born 05/01/2007

Re: NewAIMer post# 46012

Tuesday, 08/02/2022 1:08:21 PM

Tuesday, August 02, 2022 1:08:21 PM

Post# of 47077
Hi Dan,

I can think of three things that differentiate AIM "by the book" (or "BTB") from the way it's evolved here, mainly due to the work of Tom Veale :

* Split SAFE : Instead of setting SAFE at 10% for all transactions, SAFE is broken out into Buy SAFE and Sell SAFE. Typically people seem to be using a 10% Buy SAFE and a 0% Sell SAFE

* Managing the cash percentage : Keeping an eye on cash as a percentage of the total portfolio value is a good idea; AIM tends to build cash. Tom Veale came up with the notion of the V-Wave, which is updated here weekly, as a rough way to set a desired percentage of cash based on the current (perceived) market risk. Its recommendations vary depending on whether the portfolio is trading an individual stock or an ETF or mutual fund.

This leads into

* The "Vealie". AIM sometimes recommends a sale at a point when the portfolio has a lot of cash already. Tom Veale developed the idea of recording a virtual sale - updating Portfolio Control by adding half the amount that AIM recommends selling, but not making an actual trade. This effectively resets the AIM buy and sell points without adding further cash to an already cash-rich portfolio. People started to refer to this as a "Vealie".

I've likely forgotten something that some of the older and wiser people here can add (well, I'm old, but I ain't wise, so I keep my fingers crossed and hope for the best).

With kind regards,
-MIJ

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.