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Alias Born 05/27/2002

Re: karw post# 3055

Friday, 05/31/2002 11:05:37 AM

Friday, May 31, 2002 11:05:37 AM

Post# of 47153
K...

When AIM sells to the level determined by Safe, then there is an extra 10% left for rebalancing

I never thought about it that way. That is true and maybe why it gives an extra boost. With straght AIM, safe is a governer but at a cost.

This action is similar to XDEV, where you also trade what is above Safe and the 10%(or whatever is the bandwidth).
There is an extra strength in 'AIM with 4 stocks' vs XDEV when you go down a lot, or up a lot. There is more safety here than in XDEV(portfolio safety) plus there is the rebalancing effect.


The re-bal does capture any deveation from ave port value even when AIM is not giving a signal. This would be very benificial in a case where you might run out of cash Too. You wouldn't be dead in the water because you might be told to trade one stock for another by the re-bal rules thus allowing for a position even though your out of money.

I think X-DEV is quite a good method or at least seems to be. My only problem with X-DEV and similar things is that you become a "slave" to the market. AIM on the other hand can be ignored from month to month. To me this is worth a lot.

Jibes
AIM Re Bal at:
http://jibes0.tripod.com/trendseeker.html



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