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Toofuzzy

03/07/10 11:26 PM

#31507 RE: Conrad #31506

Hi Conrad

AIM has you buy more with each drop till you run out of cash ...... then you don't buy more at all. You can't conserve any more cash than not buying at all!

For LD -AIM I wanted to slow the buying down a bit so I increased SAFE by 5% with each CONSECUTIVE buy. It would reset to the original SAFE if I then had a sell. But I only use that for LD AIM where I have limited cash.

Toofuzzy
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Toofuzzy

03/07/10 11:26 PM

#31508 RE: Conrad #31506

Hi Conrad

AIM has you buy more with each drop till you run out of cash ...... then you don't buy more at all. You can't conserve any more cash than not buying at all!

For LD -AIM I wanted to slow the buying down a bit so I increased SAFE by 5% with each CONSECUTIVE buy. It would reset to the original SAFE if I then had a sell. But I only use that for LD AIM where I have limited cash.

Toofuzzy
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lostcowboy

03/09/10 1:46 AM

#31513 RE: Conrad #31506

Hi Conrad, not really interested in whether the FLAW is a flaw or not. But the easiest way to reduce the FLAW and extend how far AIM can keep its cash would be to reduce the feed back to PC. But this would reduce AIM's profit when the stock recovers.

A while back I did a comparison: A constant ratio plan at 50% ratio, a constant value plan that starts with half in stocks. Today I compared them to AIM BTB.

Here is the stock prices I used, $10, $7.5, $5.0, $$7.5, and $10.
Each plan starts with $10,000.
The constant ratio plan started with $10,000 and ended up with $10,633. A gain of 6.34%

The constant value plan started at $10,000 and ended at $11,250 a gain of 12.5%

AIM BTB started at $10,000 and ended at $12,183. A gain of 21.83%.

If this was a -89% bear only the constant ratio plan would have had working cash left.