Replies to post #17111 on A.I.M. Users Bulletin Board (AIMUSERS)

[leapyear92]

Hi All,

That is the reason I asked for the spreadsheet. There was no correlation to the share price. The initial steep ascent was suspect from the outset.

2x is certainly more believable as that result can be duplicated by most trading range programs on wealth-lab.

Regards,

Leap

[AdamH]

Hi Tom, The idea of lowering the PC on dropping stock is also worth trying, but I have not done this. In this case it could be used with stocks as well as funds and the cue to start this could be a negative slope of 150-200 day EMA. It may be a way of dealing with the problem of AIM overbuying and using up the cash reserves on falling stock.

Here too I would be very conservative and make only small correction. If the stock starts moving up again and you've made a large downward correction you may end up selling your stocks at a loss.

In AIM when the stock drops and you make a buy, the PC-per-share drops already, in spite of the fact that you increase the PC by 50% of the buy. This is because the number of shares increases as well.

In my LD AIM spreadsheet I have a column that sets the PC percent correction per year, but for all stocks I have it set to zero. Only with mutual funds and some ETF's do I have it set to 4%.

Adam