Replies to post #35842 on A.I.M. Users Bulletin Board (AIMUSERS)

[Adam]

Hi Conrad, Your thinking about the Safe issue is more complicated than mine. I look at Buy Safe, Sell Safe, and Min Trade as the three independent variables, and I have the spreadsheet calculate the L and H (lower and upper limits of the hold zone), and the Hold Zone % = (H-L)/(( H+L)/2) * 100.

I took the spreadsheet from Tom's website and long ago added those extra columns. The nice thing about spreadsheets is that as I adjust the Safes, I can instantly see how this affects my Hold Zone, and I know that I want this hold zone to about 20% or a bit less for funds and non-volatile stocks (like INTC), and about 30% for more volatile stocks like CGNX.

I suppose you could invert this process and start with L,H, and Hold Zone % as the independent variables, but that would require a total rewrite of the spreadsheet and also would be a change in the paradigm in how we think when we set up our AIM program. I’m more used to starting with Safes and Min Trade than with hold-zone parameters.

Adam