Thanks Bernie:
I pretty much agree with you. AIM was designed to be "Automatic". As I've mentioned before, I don't think there's anything magic about a week, month or quarter. However,if one is going to use AIM and GTC orders, then one has already 'bastardized' the system to a certain degree (that being setting the prices in anticipation vs trading at the current market price). That given, my attempt was to make AIM more efficient, by trying to use a stock's own typical price swings to minimize the effect of the price setting dilemma mentioned above. Apparently I have not arrived at the optimal solution yet. Otherwise I would have published my results!
As for the trading frequency, well I have to believe that was written by Mr. L. as much for calc convenience commission efficiency and illustration. I still fail to see the logic in that recommendation given the relative ease of trading on line, minimal relative expense and incredible computational power available today.
However, I must satisfy my curiosity (no dead cat jokes please). I have been playing this mind game for over a week now, and I must see it to the end. Part of the exercise is to see how the approach would have worked with weekly, and then monthly #'s. I had always intended to do this.
You have been and continue to be a strong proponent of AIM by the book, and you are probably correct in that assessment. As you said in so many words, some of us just have to learn it for ourselves.
Four month ago today, I committed serious money to AIM. It would not be fair to myself or my family if I did so blindly, with absolute faith in the system. Due diligence works both ways.
I'll report my results when finished.
Regards, Steve |
