A.I.M. Users Bulletin Board

[nokodemion]

Hey Oldaimguy, I have a question for you.

I read some old post where you discussed using buy safe and increment buy safe with each buy to safe guard cash levels.

If we have this setup Old Skool:

Default: Buy Safe 10% - Sell Safe 10% - Minimum order size 5%.
Changed: Buy Safe 20% - Sell Safe 0% - Minimum order size 5%. To Preserve Cash in a Down Trend.

You wrote, with each buy Buy Safe increases with 5%. Is this based on the minimum trading size?

Suppose we have this Default AIM Hi Setup:
Default: Buy Safe 10% - Sell Safe 10% - Minimum order size 10%.
Changed: Buy Safe 20% - Sell Safe 0% - Minimum order size 10%. To Preserve Cash in a Down Trend.

So with each buy Buy Safe increases with 10%. Is this correct? Or is this 10% just chosen for convenience?

Another question. I noticed many AIM Users use 5% as minimum trading size for buy and sell. Is there some thought behind this? Is this half of the Buy Safe and half of the Sell Safe? In Old Skool setup this 5% minimum trading size makes the portfolio control increase 25% of the Safe Spread. 5 / 20 * 100 = 25%. In AIM Hi its 10 / 20 * 100 = 50%. I wonder because most AIM Users use the 5% what is the reason, or the operational relation between, the minimum buy and sell sizes and the buy and sell safe percentages. We choose the increase portfolio control with 50% of the minimum trade size. But by choosing 5% as minimum trading size, we effectively make ik 25% ... Why??? What impact does this have.

My last question is : When we increase Buy Safe with 5% each buy on our way down... Should we not also increase the minimum trade size ????? With half of the increase? You understand my question, are those buy safe, sell safe and minimum trade size hoocked up, related to eachother?

Srry for my english... its not my native language.

Thx, for your insights...

Regards,....