A.I.M. Users Bulletin Board

[The Grabber]

Re: 50% PC Update.

Hi Conrad.

Now that you've stated that the conversation on starting CER is over (Thank God!), I was intrigued by what you also stated in one of your last posts:

for all I know from reading about AIM over the years the 50% PC update is rather arbitrary and is not proven to be the best value.

Coincidentally, I've been pondering that very topic during my long commutes each day. All within the context of our ongoing discussion of Stop Loss.

As I was thinking this process through, it occurred to me that if one executes a stop loss of all actual shares and converts those to virtual (with the intent of keeping the program active), then the PC may no longer relate very well to reality if you repurchase those shares at a substantially lower price (converting back to Actual).

While I pondered that, it also occurred to me that since AIM will always sell profitably on a LIFO basis, why not let the PC 'float' all the time based on actual cost of shares held? That is to say, alway increase PC by the total $ amount on every Buy (initial and AIM directed), and always reduce PC by the cost of shares sold (again, consuming them on a LIFO basis)?

I haven't had the time to put pencil to paper, but conceptually at least it seems to make sense.

I'm wondering if anyone else out here has has similar thoughts.

I realize it might be blasphemy, but that's never stopped us before!