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

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To: OldAIMGuy who wrote ()2/26/2000 8:28:00 AM
From: Steve Grabczyk  Read Replies (2) of 18928
 
Hello all:

Pretty interesting last 2 weeks in AIM for me.

Early last week, it looked like I was going to the moon! Then last Thu/Fri brought me back to earth.

After having this week Monday off (for good behavior?), my basket recovered Tue/Wed, held steady on Thu, then took a little header Fri. (-2%).

So I tried to console myself by looking at my progress in AIM since starting on Nov 1st.

Total change in basket value after expenses:
- Nov +10.8%
- Dec - 0.6%
- Jan + 4.7%
- Feb +14.3% through 25th
- Life +31.8% This works out to an annualized return rate of 100%. I'm feeling better already!

Cash pool is sitting at 14% of total value. It had been under 10% by end of last week, and I was getting worried. But worry is such a wasted emotion.

I've been cogitating on a mathematical approach to measure a stock's own volatility with respect to AIM and it's settings. I'm getting close to a brainstorm (after many brain farts). It has to do with relating a stock's total percent move low-to-high, and high-to-low over a specific time period (5 days, 30 days). Subtract the sell / buy resistance levels respectively. Divide your minimum sell / buy $ by the average of the resulting percentage to determine the optimum value of Portfolio Control (initial buy). In a basket approach, this exercise would help in deciding whether you can purchase a certain $ amount and expect reasonable AIM activity. Certainly one must do the DD upfront to help in deciding whether the stock should even be considered as an addition to your basket. I'll try to simulate this concept and report back to the group. I'd appreciate any feedback anyone might have as well.

Regards, Noodling in Noodle
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