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Re: daisy42 post# 35126

Friday, 12/23/2011 10:36:19 AM

Friday, December 23, 2011 10:36:19 AM

Post# of 48361
Hi D42, Re: Split SAFE settings................

I'm sure Toof will chime in, too. We don't want to make any change to the SAFE range based upon emotions, our own or the markets'.

While having the SAFE range shift automatically could be done, I'm not sure at the end of a decade that one would have gained a great deal. After over two decades of fiddling around with AIM, I now essentially always keep at least 10% SAFE on the Buy side. If we go below that, it starts to affect the "feedback loop" and the next buy price. It makes it buy more aggressively.

Since AIM's already a proportional buying and selling machine, I don't think adding to its aggressiveness on the buy side makes good sense. Even though my early work showed great results with the buy SAFE at zero, it was the peculiarity of the markets at the time (all Bull and no Bear) that was the reason. There was a fundamental shift in the markets starting in 2000 that forced me to realize the zero SAFE was probably a mistake.

So, whatever my Total SAFE is, 10% always stays on the Buy side. For some investments I have a higher total SAFE and that extra SAFE is usually on the Buy side, but not always.

Cash conservation (as it's limited) is the intent of maintaining the minimum of 10% Buy SAFE. Adding the delay between sequential buys is also a conservation method. I use both.

Generally, SAFE for me is a "Set and Forget" item.

Best regards, Tom




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