Replies to post #37924 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Thanks Clive, Re: v-Wave.................

When we collected the data for the v-Wave (the Value Line Median Appreciation Potential) the intent was to come up with something that we could scale to AIM's typical cash building and usage. We used nearly the entire data from 1982 and then added in the extremes of 2008 and 1974 to give the total range some meaning and scale. If we exclude the 1974 value, the v-Wave scales quite closely to the ancient i-Wave and would have gone closer to the zero cash level in 2008-09.

That single extreme of the 1974 low (considered by many to be a once in a lifetime market low) shifts the v-wave scale quite a bit. Therefore the entire v-Wave is a bit more conservative across the range.

The v-Wave is essentially the VLMAP inverted and then scaled to fit AIM's usual behavior. It does a pretty good job of tracking the markets.

Best regards, Tom