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jibes

02/10/05 4:00 PM

#15188 RE: AIMster #15156

AIMster.



So, if your 1/6th or 1/5th calculation based on a six month variance might be ideal for an individual stock, would ETF's/funds benefit from a faster oscillation of say a three-month interval, given that they might not move up-and-down as much in six months?

That would work (3Mo.) but the danger is that if the ETF makes a big move you will be making a big sale or buy on the first trigger out of the trading zone. It is worth doing some back testing though and I would tend to favor 1/5th for the divisor rather than 1/6th. In my use 1/6th makes for a lot of trading.
I have not tested it with AIM yet so I could not say how it would work. It's only a concept at this stage. I am using it with DDCA however and it does work. It's so new though, I haven't fully learned how to optomize it yet, but I'm getting closer.

Jibes

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