Replies to post #38779 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Orcroft, I agree with you about IYE and, additionally, the whole energy sector. Strictly guessing, but I think IYE will close below 40 sometime soon.

IYE is one example of why backtesting is not all that useful in choosing a position to buy into. Depending on the time frame used you get different results so it boils down to a judgement call and, as we know, that is subject to emotional responses and/or the Jim Cramer type hype. AIM, in one of its various permutations, does a great to truly superior job of managing one's portfolio but you still have to feed it the right grist for its mill.

On another point, I still don't quite understand what you mean by

But in my post I demonstrate that buying in an algorithmically BTB fashion on the declining stock price side is inferior than waiting for the portfolio control side to advise a buy.
That is to stop rising. It also reduces the risk factor.

I don't see how to use the portfolio control side to control buying. Can you explain how to do this?

Thanks,

Allen

[Toofuzzy]

Hi ocroft

I like your method of delaying trades and would use the 13 day ma vs the 30 day ma as a trade signal. I just dont like the extra record keeping ( for me) involved.

The reason I like funds better than stocks is that they are less likely to go to zero. I need to make money consiztently, not maximize my income in the short term with the risk of losing it in the long term. I might need to think about that last statement in my relationship to using leveraged ETFs.

Toofuzzy

[Toofuzzy]

Hi ocroft

Another problem I have with delayed trades is when you have big moves.

I have been using LD Aim on STKL for years and even sold out and never thought I would be able to get back in. Well I was Able to get back Iin and resumed Aiming it.

Recently I had a sale near $14 but then the stock dropped to below $12 in one day. Your method would have had me wait for that huge % drop to sell. Now , near $11, I am ready to buy back in.

So in theory , I like the idea, but in practice, I am not so sure.

Toofuzzy