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

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To: axp who wrote (14434)1/20/2001 12:18:17 AM
From: aptus   of 18928
 
Actually I'm intrigued with your strategy. I may follow up with some simulations when I get the chance.

The main problem I see is not so much that your stop will be taken out (since AIM would have recommended you sell at approximately that price anyway), but with

(1) A hard price drop that blows through the stop (as per my previous note) and

(2) Setting the stop correctly. Many stocks swing by 5% or more in one day and a stock that might close up for many days in a row may still retrace to take out your stop. If that happens consistently on the first recommendation, you'll be consistently selling for less than if you'd simply sold when AIM recommended it.

Still the idea is very interesting.

regards,
mark.
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