A.I.M. Users Bulletin Board

[ls7550]

creating a more symmetrical AIM variant

Hi Rien

For a sell Vealie - rather than selling some shares when AIM indicates it is appropriate to do so, and when cash reserves might already be at relatively high levels, instead you increase Portfolio Control by half the trade value amount indicated to be sold by AIM, without actually selling any shares. An extension of the Sell Vealie is a Buy Vealie, which looks to preserve cash reserves - rather than buying some shares when AIM indicates it is appropriate to do so, and when cash reserves might be at relatively low levels, instead you decrease Portfolio Control by half the trade value amount indicated to be bought by AIM, without actually buying any shares.

Starting AIM with 50% cash with both buy and sell Vealies set to 50% will steer the overall average cash (stock) to 50% across the investment period.

Starting AIM with cash = vWave and adjusting buy and sell Vealies to the vWave will steer towards tracking the vWave.

Another alternative is to hold perhaps 25% core cash separately, and AIM with the other 75%. If that AIM moves to an 'all-in' state and the share price continues to fall further, some of the separate cash reserve might periodically be added to the AIM. For example $2500 in cash, original AIM $7500 (combined $10,000), but later the AIM was all in stock and the value of the AIM had declined to $5000 (combined $7500), then the separate cash reserve might be reduced to $1875 i.e 25% of the $7500 amount) adding $625 more cash into the AIM. AIM-HI settings for the AIM are reasonable IMO for such an approach.

Regards. Clive.