Replies to post #38612 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Tom, It is true, great minds think alike, but often by different paths!

And, thanks for the list. Now I'll check them against volatility.

Since AIM thrives on volatility (I'm not sure why I didn't do this before) for the last few days I've been using an Excel spreadsheet to model volatility and here are two results.



and then

As one can see SSO has almost twice the volatility of SPYG. For the examples I've just shown a few days of each to give you the idea. I would not suggest using so few days for real trials. Not sure how long to use at this point.

The info on how to create the spreadsheet is at Finance Train. One thing to be careful of is that they don't mention that you do not use the last entry because, as you may see, it is a 100% loss because the next day's figures are not there. I'm going to try to automate that.

Have fun.

Allen

[SFSecurity]

Hi Tom, Thanks for the list of possible income positions. Here is what I found that seemed might the best for an income position by doing a volatility check for about the first half.

Symbol        Volatility	 High/Low Ratio	       Income 
 PSK		9.37%		    1.19/1		5.89% 
 BIV		6.83%		    1.35/1		3.62% 
 BKLN		4.67%		    1.12/1		4.09% 
 CYB		3.84%		    1.08/1		4.08%

As you can see volatility does not always follow in direct parallel with the high/low ratio. The one with the lowest volatility also has the lowest ratio, but you might not want to select it as it is a currency ETF, WisdomTree Chinese Yuan Strategy ETF (CYB). This somewhat explains why the volatility is low because the Chinese are maintaining a stable, low, fixed exchange rate to maintain their exports.

Anyway, the volatility calculations give one another handle on selecting the appropriate position for either a "bank" or a higher volatility to let AIM work its magical management skills.

Best,

Allen