Replies to post #43113 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi Allen, Re: Judging market direction and SAFE adjustment........

Some AIMers use a very small Buy SAFE during rising markets and selling. Maybe they start at 10% Buy SAFE but reduce it by 5% as the market rises until it hits zero.

During a declining market, let's say Buy SAFE has dropped to zero previously. First AIM directed Buy raises Buy SAFE to 5%, next sequential buy raises it to 10%, etc. This opens up the gap between sequential buys and has AIM buy more efficiently during a prolonged decline.

When the market finally turns, then the process is to step-wise lower the Buy SAFE with each Sell until it is reduced to zero again.

This way one doesn't have to make a judgement as to the direction of the market. AIM will trigger the SAFE adjustments according to the buying and selling activity. It takes a 50/50 Guess and improves it to 20/20 Hindsight.

:-)

[Firebird400]

Hi Allen Re:Frequency,
Yes a lot of that makes sense... I'd just ad in that if you run out of cash, then you're program is dead in the water. Trading too frequently and you can run out cash way too soon, or have very little to sell on big run ups... Trading too fast misses the big swings, the big home runs so to speak... What's the other side? Not trading enough, or little at all is also leaving a boatload on the table too... As you sit and wait for one 10, 15, or 20 percent swing, you may have been able to have multiple smaller swings in that trading range that far overwhelms one larger trade... So what's the right answer? I don't think there is one... Every trader on here has their own trading personality... One must do what's right for himself... Best regards...

[Toofuzzy]

Hi SF

By the time you realize what kind of market we are in we are in a different market.

Toofuzzy