RFH, I started the simulation with $9,900 (1100 sh @ $9) of stock and $9,900 cash reserve.
It shouldn't matter what amount you start out with, the percent returns would be the same, except that you need to examine your trading costs carefully.
My cost per trade in Canada is about $29, so I have been looking at trading no less than $1,000, and therefore a cost per trade no greater than 3%.
Your cost per trade is probably about $12, which is not too bad. At $12 per trade, you could buy / sell as little as $400 and achieve the same 3% maximum cost per trade.
Starting out with a total of $7,200, you could buy $4000 worth of shares at, say $20/sh, and hold $3,200 in cash reserve. In this scenario, you would own 200 shares and, at 10% of equity, your minimum number of shares to trade would be 20, and the minimum dollars to trade would be $400.
With Buy Safe / Sell Safe set at 8 / 8, the parameters would be exactly the same as the simulation I ran.
Yes, it does look like a suitable AIM stock.
Regards, Jack |
