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

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To: jackfx who wrote (18623)5/8/2020 12:53:30 PM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Jack, Re: Questions..................

Some AIMers use a single cash pool for all their AIM engines to share. Some choose to segregate their cash per AIM engine as then a bad aapl (pun intended) doesn't spoil the whole basket. This is very much a personal preference.

Q1) Yes, there have been many times I've used 'vealies' multiple times without a buy or a sell intervening. Sometimes they're packed together closely like your example, sometimes they're spread out over a long time frame.
More often if risk is steady sales and vealies will be alternating.

Q2) This isn't all that uncommon. Say we decide to start a position with 20% cash (AIM-High). The price/share starts to rise and eventually suggests a Sell Market Order should be done. Cash is now 18% of the holding's total value. Your favorite market risk measure suggests only 15% cash is needed under current conditions. A 'vealie' could be seen as a valid thing to do. If the minimum order size is 10% (again AIM-High) then only half that order value would be added to Portf. Control. In essence, that will only raise the "Next Sell" target by 5%. That's not beyond reason to think the stock price will yet rise another 5%. That will give you another chance to evaluate AIM's next market order suggestion.

Best regards,
OAG Tom
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