Replies to post #40570 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

I tried to write the AIM method in a single line of algebra

N = Portfolio Control divided by Number of Shares

For AIM next sell calculate S = 1 - SAFE - Minimum Trade Size %
i.e. 10% safe, 5% Minimum Trade Size S = 1 - 0.1 - 0.05 = 0.85

For AIM next buy calculate B = 1 + SAFE + Minimum Trade Size %
i.e. 10% safe, 5% Minimum Trade Size B = 1 + 0.1 + 0.05 = 1.15

Next Sell Price = N / S
Next Buy Price = N / B

Brief description of AIM :

Start with some stock and some cash (perhaps a 80-20 split of each for instance)
Initially set Portfolio Control (PC) = stock value (SV)
Each month you check your AIM
If your PC is larger than SV, then AIM is considering buying T = PC - SV - 0.1 x SV
If your SV is larger than PC, then AIM is considering selling T = SV - PC - 0.1 x SV
Only actually trade if T exceeds some minimum capital amount, perhaps 10% of SV
Each time you BUY additional shares, increase PC by 0.5 x T (PC remains the same after each sell).
Don't trade too often, review or trade at most once each month.

[Toofuzzy]

google Toofuzy Quick AIM Calculator.

or this link

http://jfholdings.pwp.blueyonder.co.uk/documents/1DBC25D53DE895EA410CC8D1B47E7A13A0B46C0E.html

Toofuzzy

[The Grabber]

Hi OG and welcome to the club!

If you were to spend the time going through this board (not recommended unless you like to read a lot), you will find many references to using a slightly different approach to the calulation that makes it easier within a program to set your next Buy and Sell points.

Lichello's approach is to use regular checkup dates (Monthly, Weekly or even Daily) where the price is known.

Many of us use GTC orders (especially on the Sell side) to execute an order at a predetermined price. In order to do this, we predict what the Lichello calculation would recommend in advance.

In order to do this prediction, I 'reverse engineered' Lichello's math when I developed my LD-AIM approach.

The Excel worksheet has this page that explains how to do this.


Disregard the references Virtual shares. They relate to LD-AIM but the calculations work with or without them.

If you provide your email address, I'll send you the worksheet so you can see the actual formulas that I used in Excel. They are not complex at all. Rather they are just a series of calcs that sequentially walk through the logic. A nice feature of these steps is that they effectively deal with % Minimum and $ Minimum effectively.

Let me know if this helps.

[Toofuzzy]

Google " toofuzzy quick aim calculator"

It will link you to a page that uses english pounds but that does not matter. Numbers are numbers.

Toofuzzy