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husk

01/23/03 1:57 PM

#7194 RE: Qarel #7193

Hi Quarel; I see......clever of you. My approach is to turn the 10% as many times as possible, and then limit the sales when the cash reserve gets to about 30%....that number based on the desire to remain mostly invested, plus the observation that often a 20% drop in price will be followed by a 10% gain, which may be followed by another 20% drop followed by another 10% gain, followed by another drop of ?......this is somewhat idealized for descriptive purposes, of course.

The total amount that is getting this "experiment" is only about 10% of my total portfolio.....and the rest is AIMED in a more conventional fashion, with a few flourishes (grin). It is too early to know how the performance will be, but the back-test was OK....and if the market goes sideways for the next year or two, I think it will outperform conventional AIM by capturing smaller moves, while still trading a reasonable amount (10%) at each transaction........actually I looked at trading 10% quantities after 7% moves as well, but it seemed a little too "hot" for me....also looked at trading 15% quantities after 10% price moves, which performed slightly better, but finally settled on the 10/10 scheme.