...the benefit of Aiming, the advantage Aim gets from increased volatility....
So I went back to the same DOW figures but this time I used 5% minimum stock purchase (initial stock 619 shares, 31 shares minimum buy/sell, with a $10,000 investment, 35% cash and 10% buy and 15% sell safe) and followed a variation of orcroft's entry for additional purchases or sales,
I accumulated AIM's recommended actions and implemented them this way:
Sell only when the price moves down from a high. It could be several months of up before a down. On 1-Oct-07 the price was $13.93 and on 1-Nov-07 it was $13.37 so I executed a sale of 327 shares.
Buy only when the price moves up from a run down. It could be a number of months before an up occurs. On 2-Feb-09 the price was $7.06 (market low) and on 2-Mar-09 the price was $7.61 so I executed a buy of 1025 shares, the maximum I could do without having negative cash.
I used the process for the rest of the time until December 2013.
The results were spectacular!!! 94.57% or 6.88% per year compounded over the ten year period.
Then I went back and used 50% cash and I used 5% minimum stock purchase (initial stock 476 shares, 24 shares minimum buy/sell, with a $10,000 investment, 50% cash and 10% buy, 15% sell safe) and followed the same protocol as above.
Even better! 113.8% or 7.89% per year compounded over the ten year period.
Remember, B&H got 4.68%/year. The 3.21%/year difference is no small change.
Another great feature of this approach is that at the point of maximum draw down at 2-Feb-09 with the price at $7.06 (market low), the draw down for the holding is..., drum roll please, -0.55%. The loss is higher in the first 18 months before we hit steady growth. The highest down is -2.19% at month 10.