Replies to post #1210 on A.I.M. Users Bulletin Board (AIMUSERS)

[banjanxed]

Hello Conrad,

Thanks for the response, I have looked at your previous posts and it seems you and I are on the same path. My original post was #1102, which may explain the idea better. I advocate resetting the acceleration when the direction of the buy-sell signal changes. In that manner if the stock price swings back and forth between buy and sell, there is no real modification to the basic system, but if there is a sustained price drop or rise the trade amounts will be accelerated. I am trying to find a balance between a simple mechanical rule, and a functional method for increasing AIM's performance. As of yet I do not have an easy way to test the system, but the basic premise makes logical sense to me.

I guess the basic concern is of sustained price drops. At some point, cash will be depleted and the system grinds to a halt and waits for a rebound (or more cash). The question, as you have stated, is whether weighting your purchases will get you a lower average cost per share than the traditional system. Only exhaustive testing will tell.

I would like to know more about the Vortex method. I went to your website and downloaded the Vortex software, but I am struggling with the language. If you have an english demo version, or some spreadsheet equivalent, I would like to take a look.

Again, I think we are making the same argument for accelerating trade amounts, my approach is intended to be simple and elegant, and hopefully effective. I'm trying to resurrect my old AIM spreadsheet to test my assertions, but I can't find the disk. I may get the one on the AIMUsers website and try to modify it to suit my purpose. Please keep me informed of any ideas you have on improving the AIM algorithm. I'm cooking up another idea, but on its surface it seems to make less sense to me than this does. Anyway, thank you for the response and I hope to hear from you in the future.

banjanxed