A.I.M. Users Bulletin Board

[Adam]

Hi Glen, It's an interesting idea and I don't think it's been proposed before. I especially like the idea of using Veales on the buy side, because I've been delaying my buys when the security drops a lot, anyway.

One problem I can see is your scheme would make the hold zone larger when Veales are executed. This is not a problem when the stock drops and your buy is delayed, but on the sell side this could be a problem.

Say if you've had a couple of buy Veales and pushed the buy PC down and had a buy, and then the stock reverses and moves up. In my mind you want to take the sale as soon as there is adequate gain from your last buy. But in you system the gain by the stock must now be larger than in regular AIM.

So perhaps a modification would be, when a buy Veale is executed because of lack of cash, the sell PC is also lowered along with buy PC. Or another method would be to lower the sell PC if a buy Veale is used AND a buy had taken place-- that would guarantee that a quantum of stock is not sold at a loss.

Adam