Lately I have been playing music and doing other things as well as testing my different approaches to the market and so I've been quite busy. In the mean time I have come to the conclusion that good old AIM is the best overall. I still do like Free Shares, DDCA and PPXO just fine but in the long run AIM is probably the best. overall. BTW, I can not trade using charts or any timing methods {like PPXO). I have found out the hard way (through trial and error) that I do not have the temperament for it. That is why AIM or DDCA are the best for me. Right now I am using DDCA and employing a new technique to determine how much to buy and sell based on volatility. It's all quite new and I have only been testing and using it for the last 2 Months. It works quite well and I wanted to share it with all of you. This is how it's done:
For a 6 Mo. period I find the high and low price (Using a chart). This then is the Range. I then divide the range by 6 to get a 6th part of it. I then find the mean of the range (by adding the high and low and divide that by 2). Next I divide the 1/6th part by the mean price. This then gives me a number that is a percentage. I use this percentage for the trading range for DDCA PPTM. Simple! In other words if the percentage is 7% (+/-7%) I use this as my min up or down move to buy or sell. It does work quite well because the swings are well suited to the price range for the 6 Mo. period. The 6 Mo. period is updated when ever a traansaction takes place.
Now, here is the deal; I would think that if I were to take that % and apply it to the "SAFE" in AIM instead of a fixed 10% as in the standard form of AIM it might just work. If the %. were 7 then my safe would be 7% of the stock value or if it were 17% then of course a much larger safe would logically be called for and that would make sense because a wild stock would call for a larger safe. A blue chip might be only 3% and so a small safe would be in order. With a normal safe being 10% I have found that 10% doesn't always work well in all situations.
If anybody would like to test this feel free. I do not have much time to do so. It does stand to reason that a smaller safe for a stodgy Blue Chip compared to a bigger safe for a more volatile issue like SIRI for example would make sense.
If this would work I would perhaps like to do AIM rather than DDCA. In my mind it seems to be a good idea but testing will be the judge!