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Toofuzzy

03/22/10 10:13 PM

#31566 RE: ocroft #31565

Hi Ocroft

The hard part is knowing when PC and stock is at its lowest.

Toward that end it has been suggested to NOT do an AIM directed trade (either buy or sell) till a moving average (50, 200 day ?) is crossed either to the downside or upside.

Combining both a MA and AIM eliminates being wipsawed by just using a technical signal also.

Toofuzzy
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OldAIMGuy

03/23/10 4:04 PM

#31569 RE: ocroft #31565

Hi Ocroft and Welcome,

Re: Rising Portfolio Control................

The Portf. Control only rises when purchases are made. So, do you synthetically raise the PC value as though you are making buys, but don't execute the buy until you've seen the PC value stabilize for a period of time?

I guess one could also look at the divergence of Stock Value from PC and ignore buy signals until that divergence starts to shrink.

Best regards, Tom
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karw

03/26/10 2:19 PM

#31589 RE: ocroft #31565

Hi Ocroft,

We already have the method to postpone buying by waiting a month between two real buys.

This method looks good as well, I checked it in a few cases in the 2008/2009 down market.

I imagine when not using AIM BtB, but AIM with limit orders, it could go like this: have a virtual limit buy order, start the clock for one month. If another virtual buy order happens, restart the clock for one month. If the month expires, sum all virtual bought shares and buy them at the market price.

In several of my machines it would have been an improvement.

Another advantage is that one can use limit buy orders with confidence, virtually buy to the ultimate bottom, and then do the real buy. I would guess that the buy will be well before the first sell order, taken from the ultimate bottom that the market reached. The deep buying is always the most difficult, and this technique could make it easier.

Thanks for sharing this. It is amazing that we can view and use AIM BtB and AIM with limit orders, in new ways again!

Kind regards, K