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

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To: Bruce A. Bowman who wrote (6678)1/21/1999 12:54:00 PM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Bruce, I ran the spreadsheet with the cash reserve limited by the Idiot Wave value at the same dates. If I was within 10% of the IW's Cash Reserve recommendation, I pulled a "vealie" otherwise I sold. If the MARKET ORDER was too big, I sold enough to bring the Cash Reserve up to the IW's level and did a "vealie" on the remainder.

I have one more graph to finish and that's the "vealie" only graph. There, the SAFE values will be 10% for buying and selling and we'll just keep a lid on the Cash Reserve with "vealies."

Actually, each model has a place for different people's situations. The guy that plans to retire and draw down the CASH RESERVE for living expenses might want to not use the "vealie" and let the cash grow. The younger person that has a long time to stay at it would probably want to use the combo.

The fund is a mid to large cap momentum fund. It tracks pretty well with the S&P 500, I believe.

Glad you found them instructive. I had a written version for a shorter duration in the FAQ section, but will modify those to match the graphs. I think it's important to see that there's a nice performance increase, but that it comes with additional risk. That's what we've always been told, but these graphs demonstrate it nicely.

Best regards, Tom
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