I just spend a long time writing up my reply and the result of some testing and then I pressed the wrong button. . .Everything gone
I just want to mention this:
1) I have assumed for the AIM Adaptation that you suggested:
Buy = 2*{(PC-V)-0.1*V} Sell= 2*{(V-PC)-0,1*V) PC Update after a Buy: PC2=PC1+ 1/2*Buy PC not updated after a Sell
2) I have made up the AIM Algorithm like that but the results make no sense. The Buying and selling are so aggressive that first all the Reserve is depleted long before the price of $4 is reached, missing buys at the Dip prices $ 5 and $ 4
3) Then the Selling starts aggressively so as to sell all the shares as the price hits $ 10 again
I spend lot of time modelling this but I gave up as it makes no sense.
All I need to know is A) That the model you referred to does not go into negative Reserve values B) The First Buy at $ 8 C) The First Sell at $ 5 after the price hits $ 4
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