Replies to post #44048 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Vitali

With AIM or LD AIM, as you trade those target trade prices will change.

I suppose you could decide to set up a different method where you would trade at static price levels but it wouldn't be AIM.

I have some small accounts where I invested $10,000. If the value goes to $12,000 or $8,000 I will rebalance to $10,000 stock. They are high dividend securities.

Toofuzzy

[OldAIMGuy]

Hi V and Welcome,
It's been a while since Don Carlson passed away. I think his spreadsheet for the scale trading does still exist, but I don't remember who might have it. Someone will most likely chime in. I'll check my notes.

Steve "the Grabber" and his LD-AIM would be a close approximation, but Don's could be adjusted to a more finite degree, I believe. If memory serves me correctly Don's method could be tuned to buy smaller increments in sequence to essentially allow the cash to never be fully depleted. However, the subsequent orders got smaller and smaller until a practical lower limit was achieved. The Sell side could be tuned in a similar fashion, I believe.

AIM differed in that it buys and sells more heavily the further the share value drifts from the control value. On a spreadsheet one can calculate the various plateaus for sequential buying and selling of a specific amount. You could build your scale ladder from those calcs and then just monitor stock price and watch for the trigger prices to be approached.

Best regards,
OAG Tom