Replies to post #38749 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Success is high as long as it doesnt go broke. Funds are much safer. IYE for example.

Toofuzzy

[jaiml]

Thanks Ocroft.

In the SDRL example, since its high of $46.26, the portfolio ledger side has not released any of its cash reserves.
The stock price ledger side has exhausted its cash reserves.

My records indicate that one would've deployed some cash in May 2014, which is when classic stopped buying.

In any case, I still haven't pulled the trigger on SDRL. Instead, I'm buying what looks like better value plays like EGY, GTE, TDW and TGA.

[SFSecurity]

Hi Orcroft, Perhaps I missed something but my understanding of traditional AIM is that Portfolio Control (PC) only increases as you buy but does not decrease as you sell and that is the way the spreadsheet seems to work, yet you say:

Now, Aim is designed that when the stock price is falling, the portfolio control is rising and vice versa.

Are you using a different approach for portfolio control?

Then you go on to say:

This mean that cash reserves can be released on either side of the ledger. The portfolio control or the stock price ledger side.

How would cash be released when the price is rising, or do you mean that the amount of cash (in a single account for all the AIM positions?) that is on hand and available for deployment becomes greater as you sell stock?

The other question is, when you say:

Aim advises the stock price ledger side. Observation advises the portfolio control side
Which side produces the better result?
I picks the portfolio control side.
In the SDRL example, since its high of $46.26, the portfolio ledger side has not released any of its cash reserves.
The stock price ledger side has exhausted its cash reserves.

Does this mean that you are not buying until the first uptick after the last buy signal, or is it the first sell signal after the last buy signal?

Assuming my understanding is correct that when you say "stock price ledger side" you are referring to the change in stock price generating buy/sell signals, how are you handling the paperwork for the PC side? Are you adding to PC as though you had actually bought when you got the signal but it was only a virtual buy? If these are virtual shares, do you keep a separate ledger to distinguish between the real and the virtual shares?

Lastly, do you keep accumulating virtual shares as the stock cycles high to low or do you eliminate them at some point? If so, when?

Thanks for your help.

Allen

[Alton]

Ocroft,

Interesting you use this method as a potential trigger go long and/or define a trend change. I've been playing around with something similar for strictly trading long and short. Not quite there since this doesn't actually mean we wont see sideways action and then movement again in original direction...ultimately causing stop loss.

However, it does seem a reasonable method for taking profits if in a particular trend following trade.
Alton