Replies to post #44206 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi V, Re: SAFE and Trade Size................

Set SAFE in the same fashion as Mr. Lichello did in his original thesis. He
set his SAFE at 10% of the current Stock value. In his spreadsheets he
never used a "minimum" order size but suggested it should be big enough
that commissions weren't too big relative to trade size.

As I learned AIM I found it was handy to pre-calculate at what price AIM
would generate an order (either Buy or Sell). This required assigning a
minimum trade order size. Basing the order's size on a percentage of the
current value of stock made for a discrepancy between the Buy order and the
Sell order value. Making the order value a percentage of Portfolio Control
solved this issue.

I've never fiddled with SAFE being a percentage of Portfolio Control but
would think it would potentially create a slightly larger discount to the
Buy target price than regular AIM.

OAG Tom

[Toofuzzy]

Hi Vitali

I seem to have stear you wrong.

SAFE is always based on stock value.

Tom has decided to base min order size as a % of Portfolio Control rather than stock value.

That will have the effect of increasing buys sooner. You risk running out of cash sooner. Keep that in mind.

I personally just use standard AIM. Anything you change has unintended effects. ( more likely to run out of cash with Vealies etc)

Toofuzzy