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Sunday, July 27, 2025 7:46:46 PM
NAIL 3x leveraged ETF is a great example of an investment that rocks with AIM management. But as ocroft1 posted, you have to have the discipline to follow the AIM strategy and not let emotion take over. Much easier said than to do in actual practice.
Take a look at the NAIL stock chart. AIM loves this kind of price movement. Of all ETFs I've tested, NAIL has become my poster child for AIM management. Cyclical in nature (as is the housing and construction markets), with lots of peaks and valleys for AIM trading.
Now take a look at how well AIM managed this investment. This is with an initial $50K investment with 75% starting equity ratio, with the standard 10/10/10% AIM parameters, and utilizing my drawdown curve strategy. Look at the significant drops in portfolio value an investor would have to endure to eventually realize those fantastic gains. How many could endure a $200K–$400K drop in investment value without intervening and disrupting the AIM method by taking control of the reins?
The beauty of backtesting is you can know in advance to expect this kind of wild ride from an investment like NAIL, and can prepare you for what may lie ahead. Having a backtested chart like this to refer to when times get tough may help provide confidence to stay the course.
Although this is an extreme case that most AIMers wouldn't touch, it is one of the funds I would invest in. Hopefully seeing a chart of what is possible after the tough times will encourage others to stay the course in their own AIM investments.
The x-axis is Trades and the y-axis is Portfolio Value (equity + cash).
Take a look at the NAIL stock chart. AIM loves this kind of price movement. Of all ETFs I've tested, NAIL has become my poster child for AIM management. Cyclical in nature (as is the housing and construction markets), with lots of peaks and valleys for AIM trading.
Now take a look at how well AIM managed this investment. This is with an initial $50K investment with 75% starting equity ratio, with the standard 10/10/10% AIM parameters, and utilizing my drawdown curve strategy. Look at the significant drops in portfolio value an investor would have to endure to eventually realize those fantastic gains. How many could endure a $200K–$400K drop in investment value without intervening and disrupting the AIM method by taking control of the reins?
The beauty of backtesting is you can know in advance to expect this kind of wild ride from an investment like NAIL, and can prepare you for what may lie ahead. Having a backtested chart like this to refer to when times get tough may help provide confidence to stay the course.
Although this is an extreme case that most AIMers wouldn't touch, it is one of the funds I would invest in. Hopefully seeing a chart of what is possible after the tough times will encourage others to stay the course in their own AIM investments.
The x-axis is Trades and the y-axis is Portfolio Value (equity + cash).
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