Adam,
Forgive my interruption of your exchange with Ocroft, but your last paragraph grabbed my attention. You state, "My solution to this problem of deep-diving stocks, is to AIM ETFs. With ETFs there's no need for filters. Unless you're doing very specialized ETFs they're unlikely to make big drops and stay there."
Have you ever looked at a chart of QQQ? It is one of the "premiere" ETFs. It was issued as an ETF in 1999 and reached a high of $117.75 in March 2000 (the index was well over 5000). It reached it's all-time high since that date in April this year at $68.25 (the index just over 3000). Over twelve years and only about 60% of the HIGH, and not very good prospects of ever coming close to that high. Perhaps Ocroft's concept would also be suffering from Buys during that descent, but I think his average share cost would be much lower.
I don't know if he would agree, but it seems to me that he is really applying "Vealies" to the Buy side. If you don't have any trouble with Tom using them in a strong UpTrend, why would there be any problem on the Buy side in a strong DownTrend?
Regards,
Bob Smith
