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Conrad

09/17/02 6:54 PM

#236 RE: leapyear92 #231

HiLeaP,

Whether or not in the usual AIMing people Buy High and Sell Low I can not dispute. Loads of people do the same when they run scared.

In the Vortex System I tend to state that any share bought at X will only be sold at X+Y in which y is the profit. This is the objective and with proper setting of the parameters(and excluding silly overrides or stoplosses) selling of shares at a loss will not occur. If the settings of the parameters are not well matched, that is, if the selling is more aggressive than the buying then it is possible, and this would occur intentionally in the case of the Liquidation Portfolio(When the Portfolio is structured as an Income Generation Vehicle).

But that are exceptional cases and not to be construed as a normal.

I still say that if you structurally start selling from the top down with AIM Stepping then you have a loss-making strategy. I can't lead to profits. On the rise it is obvious that stepwise buying accrues profit as long as the price rises. Then if you are at the top and just bought a lot of shares and the price starts dropping then what? The first batch you sell already suffered a loss, unless you sell a Bigger batch than the last several buys combined so that the Sell can realise a profit. So, if you implement the MIA System then it will work only if the steps are very big and if the price difference for the buys and sells are large. This amounts to the well known method of bailing out at a stoploss and jumping back in at a price reversal. But if you do that, why would you want to sell stepwise instead of selling 100% of the shares at the first signal that the dive is beginning?

If you see it in that light I would concede to your statements but then it is difficult to relate to it as a Reciprocal AIM.

Regards,


Conrad