Stock Selection. Not A System Problem
"The problem always remains, of course, that after a short price recovery. . .for example after temporary lack of bad news. . . the stock price goes to zero and then stays there. . then you are still out of the money."
That is a stock selection problem. Now assuming we hold the same stock; the point I was making is that using AIMST and applying the uptrend rule as your entry level versus the average down entry level, AIMST will out perform any parameters,devices, or any comparable system that it presents itself aganist.
Look at the clive example. Regular AIM is down $10,578.
Your system is down $4,500. Uptrend AIMST is down zero dollars.
Observe I am using AIM as was designed by MR.Lichello.
I just reversed the buy entry chronology and that simple move will make AIM outperform ,in my opionion, any system you want to compare it aganist.
By the way I looked up two stocks that went to zero.
Enron and world com never made an uptrend enough to create an
AIM buy entry. How would your system had fared during the collaspe?
Note: An uptrend move is defined as a move that creates a zero in the market order column. So,in the Clive example I would buy at
$45.50 if this was the price on my due date.
ocroft
AI
