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Re: lifo post# 914

Wednesday, 02/22/2006 4:19:51 AM

Wednesday, February 22, 2006 4:19:51 AM

Post# of 1453
Hello Jack,

I don't mean to give you a headache and I have no intention of kicking you off this board.

If you go to AI's configuration window and select the Default Model, you'll see cash reserve starts at 0%, MACRO enabled and VoluFilter enabled.

If you then select the Conservative model, you'll notice that Initial cash changes from 0% to 50% and MACRO and Volufilter are both disabled. This gives the settings Lichello described in the 2nd edition of his book.

If you click OK, you'll be using Lichello's BTB algorithm. The fact you still see options for MACRO and VoluFilter on the configuration window does not mean that AI is using them (because they are disabled).

Similarly, if you select any Lichello model (Conservative, Moderate or Bullish), Margin will be disabled. The fact it still remains as an option on the configuration window does not mean it will be used if you select a Lichello model.

If you choose to turn Margin on, then you are no longer using a Lichello Model -- you are using an enhancement.

This same logic applies if you change, say, the Buy Resistance setting from 10% to 40%. In that case you are using a modified AIM algorithm -- i.e. you're not using AIM BTB.

So I'm unclear as to why you think that "Margin would have to be automatically disabled, so it's not an option."

When you choose a Lichello Model, Margin is disabled and AI uses Lichello BTB to calculate everything. The fact it is still an option that allows you to enable it at some point in the future if you so desire is an enhancement, not a contradiction.

What I just said above and in my previous posts to you makes perfect sense to me. If it doesn't to you, that's okay. I believe that you know how to get around any problems you perceive with AI (whether by adjusting PC manually or ignoring Margin etc.).

So, I'll leave with this...

You've been AIMing for a long time and I value your opinions (whether I agree with them or not).

So please feel free to post any suggestions you have for AI, ask why AI does such and such or how to do something you might be doing with Newport in AI. Also feel free to share your opinions without fear of being kicked off this board (as for the headache, I'm afraid I can't help there).

Unfortunately at times, like now, it appears we are speaking different languages and I don't think I can explain my points any better than I've done.

So if you think I'm not making sense or am completely illogical, then feel free to ignore what I've said and just use the workarounds we've discussed. That should make the headaches go away smile

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