Replies to post #7042 on A.I.M. Users Bulletin Board (AIMUSERS)

[The Grabber]

Hi Conrad!

I thought AIM was simple

AIM is simple. Lichello says, 'Every so often, with pencil and paper:

- Compare Stock Value (SV) to Portfolio Control (PC).
- Subtract the smaller from the larger.
- Take 10% of SV away from that difference, and
- Buy or Sell the remaining amount depending on which was bigger, and if the $ amount is 'reasonable'[5%].'

That's pretty straightforward to me!

The complications came in when we (in our infinite 'Guy Wisdom') set out to 'improve it'.

IMHO, there are 2 reasons that it has gotten more complicated than that:
- Automation; replacing the pencil and paper with computers
- Limit orders, Good til Cancelled (GTC) replacing Lichello's 'Checkup Dates'.

Everything else falls into the 'Tweak' category. And I am as 'guilty' as anyone in that regard. I am a 'Guy' after all!

Luv-ya Man! Steve

[karw]

Hi Conrad,
AIM seems simple. When you analyze the situation it is not that simple anymore.
I constructed these formulas to 'solve' AIM. You cannot make it simpler as it is. The behaviour of AIM can be followed by executing the formulas. Simpler than that it won't get.
At last I have a mental picture that describes what we do.
Kind Regards,K