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Re: karw post# 6979

Tuesday, 01/14/2003 9:01:20 AM

Tuesday, January 14, 2003 9:01:20 AM

Post# of 47146
Hello Karel! Your research into setpoints underscores for me what I consider the 'dark side' of AIM. It is really a very greedy buyer. In AIM BTB the next sell after a minimal sell comes after a x% rise, where x% represents the ratio MinSell/ShareValue. The next buy after a minimal buy however comes after a y% drop, where y% roughly represents the ratio (Minbuy/2)/ShareValue. In order to make x% equal y%, you could double the Minimum Buy, but this just shifts the imbalance to the amounts.

Now I am going to be heretical. (Bernie, close your eyes!) The problem, if you want to call it that, is that PC is raised after a buy. This brings the next buy closer, which is illogical. For the placement of the buys and sells it would be much more logical to raise PC after a sell. I tried this with my nasdaq daily aim sheet and got a real improvement. YMMV. If you don't like to raise PC after every sell, consider raising PC only after a completed buy-sell sequence, say:

Sell (PC unchanged) - Buy (PC unchanged) - Buy (PC unchanged) - Sell (PC raised) - Sell (PC raised) - Sell (PC unchanged)

There was some information about the constant dollar plan recently, with the comment that it would benefit from raising the Constant Dollar Amount, preferably after a buy. I just don't see it. Comments are welcome.

(Bernie, you can open your eyes again!)

Regards,

Karel

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