LessFussy is your name from now on!
On the LD AIM your explained a few things to me that made me understand it to some degree.
You are adding a few guidelines for LD-AIM that in your opinion would make it work better. . . OK the exact details are not so important to me. . . I suspect that by tweaking the variable SAFE’s you can get LD-AIM "tuned" to what in your eyes may be effective for you. Something similar can be, and is done, with standard AIM( I call it SAFE -Tweaking) to make it respond different from Standard AIM.
So what I conclude from all this is that by using "virtual shares"
one simply alters various "parameters" so that you get:
Buy= (PC-V)*A. . . Relative to the Standard AIM
Sell=(V-PC)*B . . Relative to the Standard AIM
and you tweak the parameters till the values of A and B are approximately as you want them to be. If that is approximately a correct interpretation of LD-AIM then instead of using virtual shares you could just as well use some trade aggression factors relative to Standard AIM like this:
Buy=(PC-a*V) = (PC-V)*A
Sell=(b*V-PC) = (V-PC)*B
In this case the application of a simple aggression factor applied to the Equity Valve would have the same effect, for example you can represent it also like this:
Buy=(c*PC-V) = (PC-V)*A
Sell=(V-d*PC) = (V-PC)*B
Mathematically you can calculate the values of a,b,c,d as long as you know what you want the values of the “multipliers” A and B to be.
I am not saying that these alternative ways of calculating the trades will give the same result over a range of equity prices but what it means to me is that LD-AIM is one of the options one can use to increase or decrease the trade sizes in a particular way, relative to Standard AIM so that the Trade Advice to price changes is more in line with what an investor would want for a "particular portfolio", and by adjusting the parameters a,b, (or c,d or A,B,) in the options above the overall response will be "better" than Standard AIM would be in that case. . . This sounds like a logical conclusion.
In all this I presume does the PC updating us usual:
PC2=PC1 + 0,5*Buy. . . (for a Buy only, as it is done for Standard AIM)
or are you also using a variable there to get a more flexible PC-update form for LD-AM
PC2=PC1 + x1*Buy
PC2=PC1 - x2*Sell
This would give a great flexibility to LD-AIM and it would in my view be a very effective system in which you can tune the systems for various types of equity behaviours. . .if you wanted to do that.
