AI
Sunday, October 26, 2008 1:45:43 PM
Hi I-5001, Re: Vista as a potential AIM mutual fund holding.......
While I used Vista in my own account for years (1990s) it's not for the faint of heart. As promised, they remain nearly fully invested come rain or shine. They are also subject, like many mutual funds, to "redemption" selling where they have to do some serious portfolio work to raise cash to satisfy redemptions.
Even so, it can be used with AIM. I'd suggest using 10% SAFE on the Buy side, 0% on the Sell side and use 5% of Portf. Control for the min. order value. Then you can use either the v-Wave or some fixed value as the maximum cash reserve level. I'd suggest 50% Max. as the fixed level, selling up to the 50% level in bullish times. or use the v-Wave's moving target as the max (the v-Wave's "Individual Stock" value, not divided by 1.5 for diversified funds)
Further, when the price is declining, sequential buys should be no more frequent than one in 30 days, and you should look for an additional 5% decline in price/share before executing a sequential buy. This general group of settings should work through most markets.
If you decide to use the "vealie" idea, then you will have to review your cash reserve level compared to the v-Wave before making a Sell decision. Should you have more cash than the v-Wave is suggesting then execute a "vealie." If you have less than the VW's suggested level, then exectute AIM's suggested Sell.
The settings I described would give you an opportunity to participate essentially when we see the Zig and Zag lines reverse even a small amount and should then be workable during longer trends as well. You'll be well synchronized with the W%R -80 to -20 ranges, too.
Also, look at how TWCVX has worked relative to the SPY:
http://stockcharts.com/charts/performance/perf.html?TWCVX,SPY
Check first at 65 Days and drag that time frame through history. Then try 253 days and do the same. Finally, extend the graph to its full time frame from January of 1999 to the present. Here you see that it generally moves "with" the S&P500 Index Fund but has a higher BETA. That extra BETA gives AIM something with which to work, but also requires a deeper set of pockets for Cash.
Hope this helps,
Tom
Port Washington, WI 53074
While I used Vista in my own account for years (1990s) it's not for the faint of heart. As promised, they remain nearly fully invested come rain or shine. They are also subject, like many mutual funds, to "redemption" selling where they have to do some serious portfolio work to raise cash to satisfy redemptions.
Even so, it can be used with AIM. I'd suggest using 10% SAFE on the Buy side, 0% on the Sell side and use 5% of Portf. Control for the min. order value. Then you can use either the v-Wave or some fixed value as the maximum cash reserve level. I'd suggest 50% Max. as the fixed level, selling up to the 50% level in bullish times. or use the v-Wave's moving target as the max (the v-Wave's "Individual Stock" value, not divided by 1.5 for diversified funds)
Further, when the price is declining, sequential buys should be no more frequent than one in 30 days, and you should look for an additional 5% decline in price/share before executing a sequential buy. This general group of settings should work through most markets.
If you decide to use the "vealie" idea, then you will have to review your cash reserve level compared to the v-Wave before making a Sell decision. Should you have more cash than the v-Wave is suggesting then execute a "vealie." If you have less than the VW's suggested level, then exectute AIM's suggested Sell.
The settings I described would give you an opportunity to participate essentially when we see the Zig and Zag lines reverse even a small amount and should then be workable during longer trends as well. You'll be well synchronized with the W%R -80 to -20 ranges, too.
Also, look at how TWCVX has worked relative to the SPY:
http://stockcharts.com/charts/performance/perf.html?TWCVX,SPY
Check first at 65 Days and drag that time frame through history. Then try 253 days and do the same. Finally, extend the graph to its full time frame from January of 1999 to the present. Here you see that it generally moves "with" the S&P500 Index Fund but has a higher BETA. That extra BETA gives AIM something with which to work, but also requires a deeper set of pockets for Cash.
Hope this helps,
Tom
Port Washington, WI 53074
Port Washington, WI 53074
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