A.I.M. Users Bulletin Board

[Qarel]

Hello XT, when I had posted my message, I realized that it doesn't just apply to AIM without vealies, it also applies to AIM with vealies. Vealies don't prohibit all sells, they just keep Cash Value below a ratio compared to the Stock Value. My point remains: don't sell a winner unless it changes its characteristics and no more fluctuations occur.

But it is possible to backtest this if you would like to: Just AIM the downswings of mr. Lichello's example (or another cycle, or historical stock prices) and stay in cash when the position generates a sell over the first buy point. Buy back when the cycle on the way down passes the initial buy point again and start a new AIM position.

The reason I propose this, and not to string only downswings together, is that part of the swings are caused by general market conditions. So this way you stay on the safe, conservative side.

Regards,

Karel