Replies to post #40571 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldGrantonian]

Strange calculation for AIM?

Hi ls7550,

Thanks for your very detailed response.

The equations are easy to understand. I have a couple of comments:

>> If your PC is larger than SV, then AIM is considering buying T = PC - SV - 0.1 x SV

But maybe that is only true if (PC - SV) > 0.1 * SV ?

>> If your SV is larger than PC, then AIM is considering selling T = SV - PC - 0.1 x SV

But maybe that is only true if (SV - PC) > 0.1 * SV ?

Handling these "IF" conditions is tricky with my Excel skills. Maybe these exceptions can be ignored if the price movement is large enough to overrule the SAFE. In that case, SAFE can be ignored, and therefore not coded (clunk) :-)

I think the author of the link article in my OP (dburkeaz) has made life easier for himself by the transform used in his article. The "IF" statement is left till last, which might be a simple test for positive or negative values.

I verified that the dburkeaz method produces the same results as Lichello's method - although I still don't understand his transform :-)