>Am I correct that you would be buying an increasing amount (more than AIM BTB) as the stock went down? If that is the case you would run out of cash even faster than AIM BTB.
Not really. DDCA does not run out of cash as badly as AIM in general and the reason is: AIM increases Port Control as you buy while the price declines. By doing so, the more the price drops the more the spread between SV and PC become. That is why you can have another buy at the same price as last month, because PC has increased. If you can afford to keep feeding AIM money you will be rewarded greatly at some point down the road! AIM would beat DDCA by a lot in that case. Yes, it is quite possible to run out of money using DDCA. Indeed, if you set the factor too high that will happen! DDCA does have an advantage though in that on any small rally some selling can take place and staunch the flow, at least to some extent. You could utilize this method on AIM as well I'm sure. Why not? If your deeply in the red why not sell a little on a rally? I think you would have to lower the PC to compensate though.
You can run out of shares too. This is not a problem to me as I would just look for another stock to start a new program. When the share number gets very low rel to the portfolio value then the effectiveness of those shares becomes almost null. If your near the top or at a consolidation zone you should get some buys to replenish your share supply to some degree. A steep climber is almost as bad as a deep diver but I would take the steep climber every time!
>Did you make at least one typo ("Sell" instead of "Buy" or "Buy" instead of "Sell")?
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