A.I.M. Users Bulletin Board

[Toofuzzy]

Hi Clive


>>>>Overlay Mebane's timing model on top of AIM. That is review AIM monthly whenever the current price is above the 10 month simple moving average. Whenever the price is below the 10 month simple moving average at the review date then sell out of the stock and stop any subsequent AIM reviews, but still check monthly to see if the current price is greater than the 10 month simple moving average and restart AIM'ing once so (buying back previously sold stock - and possibly more if AIM so indicates). <<<<

I am not saying this wouldn't work but

1) after you sell out you MAY be buying back in at a lower price. (well and good)

2) After that you would HOPEFULLY have a string of sells as the stock continues up

3) (the part that bothers me) As a stock drops but is still above the moving average (maybe this happens rarely) AIM would have you buy before selling out as the stock drops below the moving average. You would then be selling stock at a lower price than you bought it.

Would #3 occur rarely enough that you wouldn't be losing money along with the usual wipsawing that occurs when following a technical indicators.

How does your method compare with

1) Only doing AIM SELLS above the moving average

2) Only doing BUYS below the moving average

but otherwise leaving AIM the same .

Toofuzzy