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

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To: THE FOX who wrote (14252)	1/6/2001 9:52:21 AM
From: OldAIMGuy	Read Replies (2) of 18928

Hi RF, It's hard to answer that question. It's a dynamic model and the change affects where your LIFO gains start to take place. Are you doing this to get a lower trade range or to set AIM up to be a better cash manager during buy cycles? If you want a lower trade range, then no shift in Portfolio Control (PC) is necessary. If you want to maintain the trade range at about the same prices they were before the change, then you'll need to shift the PC value. When changing my SAFE ranges (even while keeping the total SAFE range the same) I then usually shift Portfolio Control to keep the buy and sell points essentially the same as they were. This has the least effect on the future profitability in the future. If no PC change is made and you just want a lower trading range, it will lower the profitability for the next Sell cycle because of lower LIFO gains. In your case, I'd suggest that it would be about a 10% reduction in PC that would give you the same approx. trade prices. Best regards, Tom

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