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Strategies & Market Trends : A.I.M Users Group Bulletin Board
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To: RFH who wrote (4443)4/9/1998 10:25:00 AM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Rob,

That's the way to skew the Buy/Sell range to accomplish what you are indicating. It conserves cash for a while, but starts selling sooner than AIM "by the book." As has been pointed out here, once the first in a string of trades (either all buys or all sells) starts, the SAFE bias really doesn't matter. The buy and sell resistance levels are more for determining the range between the Buy and Sell points.

Since you are using 10% for Buy Res. and 0.0% for Sell Res. your range from a buy to a sell is determined by the 10%. It should be just about the same as if you used 5% for Buy Res. and 5% for Sell Res. The only difference is in the first series of trades.

Mr. L's original 10% for both buying and selling really determined a 20% Hold Range (plus whatever the individual chooses for their minimums). So a Sell Res. of 20% and a Buy Res. of 0.0% over a 10 year period isn't much different than just the opposite or from Mr. L's original. The sum of the SAFE values determines the band width, the bias towards accumulation or selling determines the next trade point from wherever you are.

If a stock has a particularly large range of price swings, you might find that the sum total of your split SAFE values can create profitable and frequent trades with 15% on both sides. If it were in an upward trend, you would get a similar trade range with +30% Sell Res. and 0.0%, but it will just take longer to get to that first Sell Trade.

Best regards, Tom
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