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Strategies & Market Trends : AIM Questions and Answers

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To: OldAIMGuy who wrote (62)10/28/1998 10:36:00 PM
From: Dataminer1  Read Replies (1) of 221
 
Tom and Jack,
I have been toying with some ideas to incorporate the "Vealie" concept into AIM so that it is more automatic and less subject to the users discretion. The idea that I have is maybe to have the buy and sell safe automatically adjust depending on the number of consecutive trades that are either buys or sells.
What I mean is that, say a stock is driving continually upward and maybe 5 sells have occurred in a row. Perhaps at that point, AIM would automatically increase the sell resistance by a determined percentage to prevent selling out of a stock that really blasted off, such as CMGI which went from @6 to as high as 90. If the B/S resistance could automatically adjust itself in the software, perhaps the "Vealie" could be kind of automatic.
Do you think this is a rational line of thought?
Also, in our spreadsheet, we decided to change the system so that the cash will never go negative. If a trade is signaled that is larger than the current cash available, it is simply ignored. This does not affect the Lichello 10-8-5-4-5-8-10 progression at all, but will keep the investor from throwing good money after bad on a stock such as BOST.
I am curious as to your thoughts on this change. How does Newport account for those times when the cash goes negative? Do users normally pitch in the extra cash in those circumstances?

Just some thoughts. I would like to hear your comments.

Great job on the JBL example Tom. It has been a perfect stock for AIM.

Regards,
Bill
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