Hi JP,
As AIMster mentioned, using a broadly diversified fund such as SPY will lessen the volatility and therefore you will most likely trade less.
Having said that, in today's environment, the S&P 500 is fairly volatile. But keep in mind that usually AIM likes lots of volatility and therefore the ideal way to use it is to use funds that contain components that are highly correlated within one AI portfolio.
To get the diversification you need, you would select additional funds (that also contain highly correlated components) that have low correlations to the other funds you've chosen.
So if you decide to diversify over 5 funds, you should choose each fund so that all 5 have relatively low correlations between them but that each of the 5 is comprised of components that are highly correlated.
A good way to start using SPY in today's market is to check the level of the vWave and use it as your starting cash reserve. Then select one of the models in AI that has a starting cash reserve that most closely agrees with the vWave.
Or you could simply create your own model based on the vWave starting cash position.
Regarding filters, other than the user's guide, there have been discussions over at the main AIM board here at iHub. You can search the board for "filter" (but you have to be a premium member to do it -- although you can take a free 2 week trial).
AI
