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Strategies & Market Trends : AIM Questions and Answers

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To: OldAIMGuy who started this subject12/20/2000 3:05:11 AM
From: Philip Ng  Read Replies (2) of 221
 
Anyone did any research on fine tuning the SAFE settings?

I noticed that AIM tends to throw off too much cash on bull runs, especially aggressive ones like early this year. But plunge too deeply into purchases in bear runs like the last 5 months.

A SAFE of buy=sell is good for side moving stocks. But an up trend will benefit from a setting like 0/20 while a down trend will benefit from a setting like 20/0 SAFE setting, or even something more aggressive like 40/0 to conserve cash on the way down.

I have observed that using a simple moving average to help spot changes in major trends can decide when to adjust the SAFE amounts.

I know of the VEALIE that Tom created but it does not work in a down market. In fact, using the VEALIE to keep my cash amount below 50% has caused me to run out of cash in the last 5 months.

Using the new PCA for Windows has really helped to understand the effect of the SAFE setting.

Your comments please?
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