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Strategies & Market Trends : AIM Questions and Answers

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To: Nimbus who wrote (211)11/29/2001 9:39:15 AM
From: OldAIMGuy  Read Replies (1) of 221
 
Hi N, Yes, That's exactly right. The term "centered" is just right here. Reporting too large an AIM buy or sell relative to the indicated AIM request will throw it so far off center that sometimes it will then indicate that an opposite action be taken.

By letting AIM know that you are expanding the whole account and risk envelope with the ADD feature, you avoid this and keep the Hold Zone "centered" relative to your costs and AIM trade history.

Basically Buys and Sells are all that AIM does automatically. Additions and deductions are decisions external to what AIM's attempting to do. Using AIM's buy and sell signals as a "timing" device for when to make such decisions has proved to be pretty good.

Best regards, Tom
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