Replies to post #31473 on A.I.M. Users Bulletin Board (AIMUSERS)

[AIMster]

I bought the aim book 3 months ago and 2 months ago the synchrovest book. Is there a way that combines both as I now do systematic weeky investments. Where can I find software that does both.


Welcome. They are two separate systems, though I think there may be more potential value to Synchrovest than Lichello first realized. Lost Cowboy's done some experimenting with this.

Basically Synchrovest or the later Twinvest is used as a way to save up enough to build up a holding to a large enough value so that it can be transferred to AIM. Or that's been the general suggestion.

If one were to somehow or other devise a way to give a virtual value of stock to your portfolio, say by taking the initial value and dividing it such that you get a starting "share" price of $10/share. Following this, then, as the value of the portfolio changes, recalculate the value of the "shares" and buy proportionally according to Synchrovest. This would give you a virtual program allowing you to allocate the actual investment into whatever part of the portfolio you'd deem appropriate.

Of course, you could do that with a single stock or fund also, which might be less calculation intensive, but how much do you want to put into the single fund versus one of several portfolio holdings?

Each AIM program likes to run as it's own closed-loop system, with additional cash only reluctantly being accepted. Thus a quandry for those of us acting as regular savers.

So I'm not sure there's a way to combine them both that would have practical application, but there's no reason you can't use both to manage different parts of your investments.

Best,

AIMster

[extelecom]

LostCowboy has a board that might be of interest:
http://investorshub.advfn.com/boards/board.aspx?board_id=966

and of course there is always Tom's web site with lots of info.
http://www.aim-users.com/index.html

[Conrad]

2040forsight,
What do you really mean by "Doing Both"

I can imagine having a fund in which you invest $100 and if the price rises you invest say 80 for that week, and if the price drops you would invest 120.

Then if for that fund you also want to run an AIM it and for the same point in time you get for the rising price an AIM advice to Sell 300 then you simply add up these order and for that week you Sell 300-80 = 220

And if the price dropped and you get an AIM Buy advice for say 500 you ad these up to buy 500+120= 620

That is what I would interpret to mean "doing both"

You could even do that by executing weekly the Synchrovest Buy and once a month the executing the AIM Advice . . .simply adding up the two Advice signals and execute it as a single Trade. You manage you plan for a Buy = 80 and the Aim account for a Sell=300.

However, if you ad every week says 100 or 120 or 80 then you should update the AIM account PC with the full value of the added investment. . you are adding shares to the AIM account. Your two accounts are running apart from each other. And the values are not the same

If however you have one Portfolio then things change. If you execute an AIM Buy or Sell then you Synchrovest algorithm should also account for the addition or withdrawals and here I see a dilemma: If you have updated Synch. On the basis of the AIM trade you Synch represents a value for which you have not made an investment.

For the moment I do not see how you would run one portfolio with two different algorithms.

Maybe you could give an example of what you think of?

[Toofuzzy]

Hi 2040

1) Before you do anything you should have enough savings in a LIQUID account to live on for six months.

2) You should be investing in a retirement account either at work, on your own, or ideally both.
I like ROTH IRA better than traditional IRA

3) You should strive to do all your TRADING within the retirement accounts (more tax effective)

4) You can diversify over TIME by starting one new AIM account / year. One year Large Value, next year Small Value, then Foreign, then REITS, then Bonds

5) Funds are safer with AIM than individual stocks (either Vanguard or ETFs )

6) You can save up the money for a new AIM account and start it with a lump sum once / year rather than Syncrovest. Cash is VERY valuable in risky times.

Not always
Toofuzzy