Replies to post #38426 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Thanks for the link, Tom, to the old aim-users stuff.

The answer where you say:

I have also used a reduced SAFE on both the sell side and the buy side for those stocks where I have 1000 shares or less. Say I have 500 shares of a $20 stock. If I'm going to trade 100 shares lots then 10% safe is probably too much. I then reduce the buy and sell SAFE values equally to get the trading range to about what the 52 week highs and lows have been. That way I will get more trading activity and make more money.

is very interesting because it is hard to find good ETFs that have a high enough volatility. Doing what you suggest seems to work well. However, in backtesting I have found that setting the buy SAFE higher than the sell SAFE seems to get a higher rate of return. I suspect this is because it slows down the buying as stuff declines.

Playing with the minimum stock purchase (MSP) seems to help as well. There appears to be a range where the return does not change so I've been selecting the midpoint as the MSP.

This is, of course, straight AIM, no Vealies or other deviations.

Warmest Regards,

Allen