RE: Questions for the board on 'Vealie's.
Will and I have recently been discussing 'Vealies' and I have some related questions...
Who, besides Tom of course, have used Vealies to keep a lid on cash reserve?
And if you have, How often (is it a regular part of managing your AIM program?
And if you have, is the Sell Market Order / 2 PC adjustment driven by market price (Lichello Calc), or by your pre calc'd Next Sell order?
For reference: Tom's original definition and rationale regarding 'Vealis' is below...
© VEALIE - Another change from Mr. L's origional plan I use with my AIM accounts is to limit my selling. If after an extended period of upward movement, like the '91 to '93 period, I find myself with too much cash (say over 50% for stocks and 33% for mutual funds) I quit taking AIM's sell advise. I, instead, pull a VEALIE© and take the dollar value of the sell market order divided by 2 and add that amount to Portfolio Control. This eliminates the sell order and moves the next buy and sell prices upward at the same time. I will continue doing that with each new sell order until the cash reserve is diluted to about what the Idiot Wave is suggesting at the time for stocks and funds. Then I start to sell again just as AIM would like. If cash reserve gets too fat again, I just repeat the same proceedure. This change allows me to stay more fully invested, expand my risk envelope slightly and participate in long term rallys as they come along. Using the Vealie I attempt to keep the cash reserve within about 10% of what the Idiot Wave is suggesting (IW says 33% cash, I keep my cash between 30% and 33%)
Thanks!
Best Regards, Steve (The Grabber)
