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Re: mille01652 post# 32858

Saturday, 11/13/2010 8:45:09 PM

Saturday, November 13, 2010 8:45:09 PM

Post# of 47140
Hallo mille01652,

My opinion is based on the fact that the Original Lichello AIM has been "modified" by various derivatives and all sort of deviating ways of setting SAFE and even to modify the PC One of the much talked about subjects is Rebalancing the Cash Equity Ratio(CER) now and then.

As the trading progresses the original CER will change drastically. Often it is then useful to rebalance the CER and adding cash is a good time to do so.

So, I advice this:
1 When you have cash to ad calculate or determine the CER you want to have at that moment. . .use whatever rule there is for that. Assume that you would at that moment set up new AIM account.
2 Calculate on the basis of that CER how much shares you need to buy. . or simply add stepwise amounts of cash and equity till the CER is what you want it to be.
3 Then look at the PC Value and set PC = Equity Value, and ignore any Trade Advice you get at that point. . .you will get a negative Residual Sell Advice =(PC-(1+s)*V), which probably is lower than your Minimum Trade anyway

This way you have essentially a NEW AIM account precisely as you want it. You have dome the Rebalancing while having added to the Reserve.

If you simply split the cash 50/50 cash and equity you will change the CER as normally the cash and equity will not have the same value. You might a well do the rebalancing as I suggested right at that moment

Conrad Winkelman
What is Vortex AIMing? Look for my Vortex Discussion Forum:
http://investorshub.advfn.com/boards/board.asp?board_id=1341

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