Replies to post #11449 on A.I.M. Users Bulletin Board (AIMUSERS)

[Capitalist]

Hi Jibes,

I'm actually basing the buy on sell prices on a function of the minimum order size as a percentage of portfolio control. Without going into all the detail, here are the sell side formulas:

Sale Price = ((M+1)T+FC)/N(1-F) where:

M=minimum order size as a percentage of PC
T=Portfolio Control
F=SAFE %
N=Number of shares on hand

Sale Amount = ((1-F)NP-T-FC)/(1-.05F)P where:

P is the price determined in the first formula

The .05 reflects the fact that my broker's maximum commission rate is 5% (large orders of low priced stock will almost always be in this range there, so I used the most conservative assumption I could).

The second formula incorporates the idea of tangential AIM as posted by Barry quite some time ago and which has the effect of ensuring that AIM will not signal a residual buy or sell.

This may give you the "flavor" of what I'm doing.

As an update to the board, I now have one position running in IBZT as of today, and will be opening two more tomorrow in ATNG and ICOA.

More updates to follow!

Cap