Replies to post #38938 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

Hi Allen

The clue is in that image you posted, the online calculator is using the bulk standard Lichello way - percentage of stock value. Newport uses percentage of Portfolio Control.

i.e in that image



Stock Value above $11236, sell price $112.36 (stock value below $9000, sell $900)

Generally the two different choices (percentage of Portfolio Control (Newport) and percentage of Stock Value (bulk standard Lichello)), work out much same overall. Some interim differences will be apparent, but neither has a overall edge.

[Toofuzzy]

Hi Allen

I see that Clive found the difference. I was wondering if my formula might be off.

Standard Aim uses stock value and some use Portfolio Control to figure the SAFE value.

They will give slightly different answers and some feel using one is better than the other.

As I have said in the past. It is important to be consistent and not change your settings no matter what you choose.

Toofuzzy

[The Grabber]

Hi Allen.

When the Newport program was written, the decision was made to use % of PC instead of Lichello's original algorithm. Not sure specifically why that was. Easier to program? I don't know what the on line AIM Calculator uses.

Note that Lichello used the price x # Shares to get to Stock Value (SV) on the checkup day to do the Buy Sell calculation directing a market order for 'X' $$$.
He did not predict the price at which the next Buy or Sell would occur. Big difference!

FWIW, I worked out how to use Lichello's math to predict next Buy or Sell price and amount when I developed the LD-AIM worksheet.
It includes accomodation for minimum $ trades as well.

The 'Calcs Example' tab in the LD-AIM worksheet walks through the logic of this approach.