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Qarel

09/13/03 3:00 PM

#9661 RE: Conrad #9660

Hi Conrad, the problem is also known by the name 'bracket creep', and that is virtally gone, see the succesive sell-buy levels (last column is portfolio value when the price returns to 10, starting at 10000+5000):

11.67 - 9.02 - 15071.81
11.67 - 9.01 - 15197.52
11.67 - 9.00 - 15329.10
11.65 - 9.00 - 15461.35
11.64 - 8.99 - 15593.15
11.63 - 8.99 - 15727.72
11.63 - 8.98 - 15862.29
11.61 - 8.96 - 15997.55
11.59 - 8.96 - 16138.35
11.59 - 8.95 - 16278.11

As 50% moves the bracket upward and my 24% moves it very slowly downward, 24% is just a little bit on the low side for 'stationary brackets'.

I don't like constant minimum trades in the context of GTC orders for AIM. This will make the bracket contract as PC and PV gain. That is why I choose a percentage of PC. Of course, in setting this % you observe points like commissions etcetera. Because in AIM PC can only grow, after that it is no longer a problem.

Regards,

Karel