Hi Leap.
Can you walk us through a series of trades from beginning to end?
The LD-AIM spreadsheet was not built to track or otherwise manage an AIM program. Rather, it was designed to derive the starting points for a 'Low-Down' program that acts like Classic AIM (without the 'core' position Classic AIM requires as a pivot to trade around).
So it cannot be used to 'paper trade'. It wasn't intended to do that.
Using SGA as an example, I started with the following inputs:
Total $ Available: 10,705 (this will be Portfolio Control)
Initial Purchase Price: 17.55 (my entry point).
Sell Side:
# of Transactions: 5
Resistance %(Safe): 5%
Minimum Sell%: 10%
Minimum Sell $: <blank>
Buy Side:
# of Transactions: 3
Resistance %(Safe): 5%
Minimum Buy %: 10%
Minimum Buy $: 1000
So I end up actually buying 250 shares of SGA. The spreadsheet also determined that I need to 'carry' 360 Virtual shares to operate my program. These 360 Virtual Shares represent the 'core' position not purchased.
In addition, I need to set aside $3,018 for Cash Reserve to cover 3 consecutive Buys.
Bottom line here is that I am 'covered' on price appreciation (without an intervening Buy) up to $31.49. The price could also drop to $13.64 (without an intervening Sell) before I run out of cash. I also 'saved' $3300 of that $10705 that could be used for something else. This is a 31% reduction of risk IMO.
On the other hand, if one really wanted to deploy (risk) all $10705, the spreadsheet allows for that via a proportionate increase in the program which in effect 'Fully Leverages' your $. This is simply the reciprocal of the '% Down' value (in this case 1 / .692 = 1.45) applied to the previous Portfolio Control.
You mentioned that...I must be getting dense in my old age and am ashamed to call myself an engineer but I cannot make sense of your spreadsheet although I understand the concept.
This is probably because I am not an engineer! I put the spreadsheet together simply as a means to an end. It took me a few months to accomplish it as well! I make no claims for it other than it works insofar as Low Down AIM has been defined.
I hope this answers your questions.
Regards, Steve
Best Regards, Steve (The Grabber)
AI
