Replies to post #38207 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

My apologies, I did mean ocroft and just slipped a cog.

AIM can produce same direction trade signals repeatedly. Storing those up and making one larger trade potentially nearer (just after) the trough (peak) can 'average-in (out)' a single larger trade at a better overall average price than the cost-averaged of the individual trades.

Yes, this appears to be the case. I've done a half dozen this way and it reliably gets a higher return than either straight AIM or AIM with Vealies. Sometimes not by all that much but enough to make it worthwhile.

Another virtue of this approach is it reduces trading expense as well as making monitoring very simple. There is no need to calculate a hold zone to make it work. Plus, if one has the time, one can monitor the movement more frequently than once a month and catch the buy/sell point nearer the change in direction making for a lower cost per share on a buy and a higher profit on a sell.

I haven't tested with daily or weekly figure yet, but I suspect that it will do well even with those funny bumps that happen near the tops and bottoms. In a couple of cases the moves have been enough to trigger a buy/sell just two months after a prior buy/sell.

We'll see.

BTW, on buying an ETF that has done the worst recently, does it make sense that the 3-5 year return be positive while the year to date (YTD) and last twelve months be negative? It seems that having the longer term returns be negative would indicate a longer term down cycle and so not much volatility like Lichello shows going from 10 to 5 and back to 10. Does this make sense?

Best,

Allen