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OldAIMGuy

02/01/20 11:56 AM

#44135 RE: Vitaali #44131

Hi Vitali, Re: Is this what automatically happens when using the classic AIM formula?

Yes, classic Lichello AIM in all versions adds half of the buy value to Portfolio Control. Consider it the built in reward for buying "low" according to AIM's instruction.

If your Portf Control is 10,000 and you execute an AIM directed buy of $1000, you add half of that to PC. That makes it 10,500 as the risk threshold that needs to be achieved by the stock's value before AIM even considers selling. That would be a 5% increase in the risk threshold.

Each buy cycle, no matter how long or deep, will reflect the buys in the same fashion inside Portfolio Control. This is what allows AIM to build value even if the price/share never breaks out of a trade range.

OAG