Hi Larry,
Actually AI does allow you to adjust the PC allocation from 0% to 100%. So you can set the PC increment to 0% and the PC will never change with a buy. I have been playing with it with some interesting results.
I understand that from previous posts. On this I wonder if you can enter a negative number for the PC- update % ???? It would do wonders as a Brake on the Cash Burning for falling prices! It’s a Filter!
When the prices move within a trading range you can use an PC-update % of say 60 or 70%. This would increase the buying and the profit creaming with the right setting. . .the cash would be exhausted at the bottom and the profit would be taken at the top.
As soon as the price drops out the bottom limit you set the PC-update to say –30% 05 –40% and the Brake is applied. The trade advice will give large buys and if you judge it as opportune you execute it with Extra Cash. . .it's is Judgement Call. . if you do not feel right about it(use a little study) then sit tight or get out. . .the Reserve = 0 almost anyway. In any cast one should NEVER execute a Trade Advice if one is not sure he is doing the “right thing”. . this means to me that in any case one should be convinced he wants to invest the Advised Trade Amount IF he does it . . .that is no different than asking oneself:
“Would I start a New AIM Portfolio at this point?”.
If the answer is ”yes” then simply invest the extra cash, otherwise don't and maybe even better, get out.
If the price reverses then AIM will have a healthy dwell factor to delay the selling because of the high PC value. . .So this is also a healthy Filter for sell delays, so the last buy at the low price will generate a good profit if price keeps rising. . .so this provides the simple filters everyone is seeking, but you have to be prepared to interference with AIM when the time is ripe: . . readjusting the PC-update % to other values if the price behaviours changes into a trading range pattern.
Maybe your interesting results are a bit like I described?
Using a negative PC-update for the selling can be equally effective in delaying the Sell-Offs. . .The lower PC causes the Sell to come at a much higher price. . . This sounds like a Vealie to me but I have never tried to dive into Vealies deep enough to make this hunch stick. . .My practice is(was I should say!) that if I felt the Price would continue to rise I would simply ignore the Sell Advice and let the profit Run. . .I am the Filter.
If you can translate these judgements. . .to trade or not to trade. . . to some extend into the settings of the PC-update % then this automates the Portfolio Management. . .the program would still deserve the name AIM, and if the price behaviour changes then you change the settings again! This way you can credit yourself with better than average yield or blame yourself for having made the wrong decisions.
