Replies to post #346 on A.I.M. "In Depth" Q&A (AIMQ&A)

[Toofuzzy]

I'll answer your last question first.

YES !!!!!!!!

Aim is " good enough "

You can spend the next 50 years finding improvements and never impliment it or you can start using it now.

Regarding changing SAFE at market top and bottom:
If you know when a security was at a top or bottom, first, let
Me know! Second, you would not need Aim.

The whole point of Aim is so you can invest unemotional by gradually selling and buying. If you change the parameters you are making emotional decisions and defeating the whole purpose.


Whatever parameters you pick when you set up an account, you should stay with them.

Not always
Toofuzzy

[OldAIMGuy]

Hi Buzz78 and Welcome.
Re: various AIM parameters and testing..............

There are more of us usually reading and responding on the AIM Users BB here on i-Hub.
http://investorshub.advfn.com/AIM-Users-Bulletin-Board-949/

Your concept of a modest increase in the Portfolio Control value once you've reached a target Cash Reserve percentage is very much like the 'vealie' concept. A spreadsheet set to do this should work well.

With that, you will artificially keep cash lower than traditional AIM during long bull markets. Keep in mind that limiting total cash could affect your buying during extended bear markets. I do two things in conjunction with 'vealies': 1) have a higher Buy SAFE than Sell SAFE to help conserve the cash in bear markets, and 2) make no sequential buys in any one security more often than once in thirty days. Both these help to conserve cash for longer periods.

I use different buy and sell SAFE settings for different classes of securities. I also use different minimum order sizes for those classes. So, I treat individual company stocks different from diversified mutual funds, for instance.

As TooFuzzy mentioned, it is best to pick All Weather settings for your investments and then stick with them. Changing AIM's settings in the middle of a market change can work like chasing one's own tail. It's better to Set and Forget.

I hope this helps. Please feel free to ask questions as you gain experience.