A.I.M. Users Bulletin Board

[Adam]

Toof, Conrad and Ocroft. Putting in a buy filter so you only buy on some recovery and attempting to buy on the way up, will work best with a stock that has a big drop and then recovers.

If the stock does not recover no method helps. AIM just breaks down and results in a big loss either way. You say you can avoid this by stock selection, but I doubt it. For example I've had stocks that bottomed out because of accounting irregularities, and there is no way for an outsider to know these things.

It can also hurt you with the most common situation: a stock that makes a drop not far below your hold zone and recovers. In that case the filter will block the buy and poison the AIM mechanism.