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karw

11/12/11 2:55 AM

#34987 RE: 1step #34986

Hi 1 step,

buy safe = 0%
sell safe = 0%
buy amount 5%
sell amount 4.75%

existing formula for updating PC:

PC new = PC old + equity bought divided by 2

you can replace this formula:

PC new = PC old + (equity bought divided by 2) * 0.1 * buy safe

If buy safe is 10%, which is the standard setting then nothing changes.
If buy safe is 5%, then PC is updated but not as much as in the regular case.
If buy safe is 0%, then PC is a constant value. This is what I use for RDSA.

The character of the AIM machine is changed, but you still have all the niceties of AIM, you know what to trade and how much and for what price. You adapt the AIM formula to the amplitude of the price wave.

I started to use this for RDSA which is a dividend stock. Each quarter you get a bit more than 1% dividend. And the minor movements I want to exploit to increase the number of shares held.

Hope this explains it a bit more. Keep in mind that I just started this a few weeks ago:)

Best Regards,K

karw

11/12/11 3:57 AM

#34988 RE: 1step #34986

Hi 1step,

Nice article about Value Stocks:

http://www.rickferri.com/blog/investments/defining-the-value-in-value-stocks/

These are the kind of stocks I want to use in this context, focusing on Cashflow mostly. Also I want a dividend, for example GILD is a nice value stock, but no dividend. So no GILD for me.
UNH is a value stock, that just started a dividend. I made a start buy, using No-down-Ladder-AIM, and have now 1 package of UNH. If it is going upwards, I will just wait. Limit orders are in the system to buy additional packages at 5% discounts.

This is fully parallel to my UBA Aiming.

Best Regards,K