A.I.M. Users Bulletin Board

[slow lane]

re: PC+buy increment,

I've done a little work with altering this parameter. When it is set higher it creates a more volatile portfolio. Buys are larger and sooner, sells are larger, and it accumulates more shares over time in an example like AVCI. It is also more apt to run out of $$.

Here's a quick & cheap run:: starting at 5.90 on your chart (jan 05), $10k, 50-50 cash, 4% interest, 10% safes, $500 min trans, monthly upd8 ... price at end 6.80 (jan 08);

PCIR @ 50%:
- $2002 max loss
+ $6384 end
848sh start
995sh end
28% min cash

@60%:
- $2126 max loss
+ $7213 end
1170sh end
20% min cash

@70%:
- $-2171 max loss
+ $7809 end
1342sh end
15% min cash

@30%:
- $1972 max loss
+ 5814 end
813sh end
32% min cash

In back tests running the PCIR higher seemed to work well with indexes and funds long term, increasing overall performance. But with individual stocks the greater volatility might create frequent cash-busts?

oh, and ... "Go You Packers". OT-(Was that Seattle game not The Best Lambeau Field game in recent memory? Favre, Holmgren, Comeback, Snow? doesn't get better.)
-sl