Hello Tom and LC! Very interesting, all this! I tend to agree with Tom: usually this not a problem with AIM, except for those stocks that trade in a relatively narrow range. (And yes, also when you buy whenever AIM allows it. But that is not a problem with AIM.) And then LC's setpoint (PC/Shares) or a Cash Reserve that doesn't get back to 'normal' levels are a warning that something is going wrong in your account.
In case people notice this happening, what should they do? Probably a reset is good enough. But I am reminded of the problem of a constant dollar plan, where cash starts running up in a cycle. AIM's cure was to add something to the reference amount after a buy (PC_new = PC_old + Buy/2), but now cash gets depleted. So in principle, one might consider changing the divisor from 2 to something greater. In the opposite case, where cash keeps running up (from one cycle to the next!), you could make the divisor smaller.
Regards,
Karel
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