Replies to post #54 on AIM RE-bal

[lostcowboy]

Jibe, While re-Bal is a old technique, the way it is being used here, is new to AIM. I do not believe that any software is curently using it. This method is to new yet. First will come pencil and paper , then testig spread sheets. If that looks good then will come spread sheets/programs for investers to use.
Aptus(Mark) who gave you the link to AI, has alway's had a high interest in new idea's. How ever he will not put a idea in his programs unless he thinks they will work, and he has tested them in all types of markets.
So you ether have to wait or become a tweaker, you can tweak using pencil and paper or make your own spread sheet. Your pick, I use both myself.
Note: while I have been following the board, I have not done any tweaking myself, so I cannot give you a spread sheet. but there may be someone on the board who can.

[aptus]

Hello Jibe (I notice there is a "jibe" and a "jibes," are these the same person?),

My apologies for not responding earlier. I didn't notice your post until just now.

I believe your Re-bal technique will work with Automatic Investor. You can set up a portfolio containing 4 different stocks (you can actually have up to 50 stocks in one portfolio) and run it for a month. At the end of the month, buy and sell in order to rebalance. Then run it for another month and keep repeating.

You'll have to calculate the amount of shares to buy/sell (and which stocks to buy/sell) manually.

If the equity value doesn't change, after your rebalancing, then you're all set. Otherwise you'll also have to resolve what to do with the Portfolio Control when you make non-AI directed trades. AI allows you to manually adjust the Portfolio Control, so you can pretty much do anything you like in that department.

Otherwise AI will take care of everything else for you.

Let me know if you have any other questions (and if you reply to my post, rather than posting a new topic, I'll be guaranteed to see it ;0)

Regards,
Mark.

http://www.automaticinvestor.com