AIMS ULTIMATE GOAL
Mr Lichellow making some remarks about his AIM design.
"AIM loves a good solid disaster. He remarks about how Aim loved the crash of 1974 and the crash of 1987. He comments that Aim would love to see the market become so demoralized as to fall completely apart; this would allow Aim to move in for the kill at the bottom."
So, from the above comments, I will conclude that the true goal of AIM is to release the bulk of its cash reserve at the bottom of a cycle. "Move in for the kill at the bottom."
However, not knowing where the true bottom will occur; AIM releases its cash reserve in an algorithtic fashion as the stock is downtrending.
Now, if one using AIM knew where the exact bottom would occur; wouldn't the aimer wait for that exact moment and then release all its cash reserve?
So, where is the bottom? I don't know. However, I look for the next best thing.
I look for what has to unequivocally happen before a possible (bottom definition)has occurred.
A possible (bottom definition) has not occurred until an uptrend move has started.
So,if a stock has desended 10-8-6, I would await my due date to see if a possible bottom is going to occur. If the stock rises back to 8, I would then enter using the AIM algorithm.
If the stock continued to 5, I would wait for the stock to rise to 6 or above before entering.
Using the Clive example at post 35618; to release cash reserve at the 80-64-51-41, before a possible bottom has occurred seems to me an anti-aim goal move.
I would wait for an uptrend move to the $46.00 level and release the algorithtic $10,000 amount called for by AIM as the stock was descending. "Move in for the kill at the bottom."
Now you may notice that the stock can reverse its trend after uptrending and start a new downward move. This is true.
But with due diligence I selected the stock.
This becomes a stock selection not an AIM problem.
ocroft
