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Alias Born 08/04/2003

Re: The Grabber post# 29893

Monday, 05/04/2009 7:34:55 AM

Monday, May 04, 2009 7:34:55 AM

Post# of 48431
Since that attitude carries a lot of risk associated with one's positions dropping like a rock, I thought that if one could incorporate a stop loss process inside of the AIM process, that risk could be mitigated.

In theory that's part of the function of cash reserve, i.e., to limit one's loss by running out of cash, so that your total potential amount at risk is already known.

That being said, having a preset loss limit so that you keep some cash reserve to use as a seed in another program may keep you in the game longer overall. Which wouldn't be a bad thing. It's making the judgement call that becomes the difficult part. Bu then, that's always the case, no matter what "system" one may use.

Let us know as you get more insights.

Best,

AIMster

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