Replies to post #40715 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Grabber, I gather this means that you set GTCs on the sell side to capture profits. What do you use for metrics?

On the buy side, do you use GTCs or do you monitor and place buys based on some metric?

Thanks,

Allen

[jaiml]

Steve, in my back-testing, I have a setting that selects a random review time instead of keeping it constant. I ran many simulations on many stocks / ETFs and I found that a lot more often than not, using a review period that falls randomly between 2 and 6 weeks actually achieved better results than doing the review constantly at 2 weeks, 4 weeks or 6 weeks. It provided an additional return of something along the lines of 0.25% per year on average with a probability of more than 70% as I recall. It might not be significant, but it goes to say that there is nothing magical about the month review period and that a bit of randomness actually helps.