A.I.M. Users Bulletin Board

[ls7550]

RE: Split Portfolio Control

Hi Glenn

Vealies serve the purpose of uplifting the core price level around which AIM works over time. Generally AIM is a cash accumulator over time, Vealies somewhat aid in reducing that accumulation.

SAFE and Minimum Trade Size can be replaced with an arrangement of a minimum trade size and trade size scale factor. For example a 0% SAFE and 20% minimum trade size, 0.5 trade size scale factor is no different to 10% SAFE and 10% minimum trade size. After a 20% price move in both cases 10% of stock is bought/sold.

You could therefore achieve a similar effect to the one you outline by using a variable trade size and/or trade size scale factor. Which in many respects is akin to using time diversification and delaying AIM account reviews (and potential trades) until a later date.

Which might be reduced down to running a virtual AIM on the vWave and only reviewing your actual AIM’s when that virtual indicated a buy or sell.

When the iWave was public there was a guideline rule that the low risk and high risk levels be used as a guide of when to trade. If I recall correctly the guideline suggested only looking to follow AIM indicated buys when the iWave was in low risk and only looking to follow AIM indicated sells when the iWave was in high risk. Those high and low risk bands have been carried forward into the vWave and in the iBox they are shown as red and blue lines (10 percentile levels that are currently showing 38.3 and 59.1).

Best.
Clive.