Jack, yes, I made a quick small profit, and that's the way my system works. But, I think the AIM strategy is less nerve-wracking -- I have to watch the market closely every day, because getting out a day late can easily wipe out those little profits.
For short term trading, I don't know if there's a reliable indicator that would let you sell on the upstroke and buy on the downstroke. That would be perfect market timing.
The AIM strategy, however, compares values across different types of investments. Since you're doing comparisons of long-term investments, making a move on a particular day isn't critical. You can look at the relative values of your investments, prune those that appear the most excessively high, and buy something that appears low. It's a kind of value-oriented asset management, and that kind of strategy has made a lot of people rich (including people like Warren Buffett, if I'm not mistaken).
I don't have my trading rules posted, and for this reason: my methods are essentially skimming methods. They rely for success on small moves in the market. If a fair number of people knew the exact equations, and if some of them worked for big investment companies, and if those companies started trading using the rules, then I'm pretty sure the entire system would stop working. Just like, if it was determined that 100% of the market's gains came on Wednesdays, that would end as soon as lots of people knew about it, because then all short-term traders would buy on Tuesday (raising Tuesday's closing price) and sell on Wednesday (lowering Wednesday's closing price).
Kevin |
