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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: RFH who wrote (11241)5/25/2000 11:51:00 AM
From: OldAIMGuy   of 18929
 
Hi RFH, Looking at the chart
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I think this fund can be run with 10% Sell SAFE and 0.0% Buy SAFE (Resistance). Then, keeping the cash reserve level to somewhere near what the IW is suggesting for diversified funds should work fine.

Don't forget to reduce the Minimums for trading to as low a value as practical. Invesco may have a lower limit to the size of the transaction they'll allow. Don't forget to reduce both the minimum share trade and the minimum dollar value as well.

If after making those changes the "Hold Zone" between a buy and a sell is still not where you'd like it to be, then you can start trimming the Sell SAFE back one percent at a time to shrink the bracket further.

If this is an IRA or retirement account, then you should do fine with a very small trade range. If it's taxable, then remember that you want to make more than Uncle Sam on each "round trip" from a buy to a sell.

Generally I use the above SAFE levels for fairly volatile diversified mutual funds. For Sector funds, I use bread and butter SAFE of 10% on both sides. I also use full SAFE on UOPIX's souped up index fund (thank goodness!).

If you've sized the "Hold Zone" the way you want, but aren't satisfied with just where they start and end, you can tweak Portfolio Control a bit to raise or lower the entire Hold Zone a little bit. Once it's up and running, the first trade, either a buy or sell, will then pretty much determine where the Hold Zone moves from that point on.

Best regards, Tom
PS: We use Invesco Technology Fund (FTCHX) in Jane's account. For that fund I'm using full SAFE on both sides.
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