Replies to post #38780 on A.I.M. Users Bulletin Board (AIMUSERS)

[jaiml]

PC stops rising when AIM stops buying

Allen, I will take a stab at answering your question based on my understanding of Ocroft's method:

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

The PC rises after a buy is executed. If the trend eventually reverses, AIM will will stop recommending buys, and this is when the PC stops rising. And this is when one executes the (accumulated) buys.

It is a cool AIMish way of detecting a reversal in the trend.

As an example (according to my calculations): If one started an IYE AIM in June this year, and executed monthly based on monthly closing prices, then no buys would be executed until the price closes at or above 44.28.