Replies to post #38785 on A.I.M. Users Bulletin Board (AIMUSERS)

[jaiml]

IYE Delayed Buy Price Target

Hi Allen, here is how I came up with the delayed buy target for IYE if one were to follow Ocroft's since end of June:

June: Start with 274 shares at 56.8
July-Oct: No signal
Nov: Add 42 shares at 45.06
Dec 11: Add 37 shares at 42.59

PC would've been ~16,750. Total no. of shares would be 344.

Using Ocroft's, non of the above buys would've been executed in real life, just kept track of. AIM would only get out of the hold zone above the price of PC/(1.1*Shares) = 16,750/(1.1 * 344) = ~44.2 (at which point the PC would stop rising) and I suppose the is the price his method would next execute on

[Toofuzzy]

Hi sf

Starting with 25% cash with a security that is near its high is not enough cash to handle a significant price drop.

As a rough rule of thumb (there is a chart somewhere) Aim can handle a price drop equal to the CASH %

There is a reason 50% is the default starting amount and 62% is reccomended now as posted weekly.

Toofuzzy