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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Jack Jagernauth who wrote (8978)	10/20/1999 7:46:00 AM
From: HighTech	Respond to of 18928

Hey Jack: I tried raising the cash(for minimum buy and sell amounts) from 5%($500 on a $10,000 starting amount) to 10% to decrease the number of trades but the result ended up underperforming. With commissions at $8 a pop, it is not worth it to reduce the number of trades to lose the higher return. I have found that setting buy safe in the negative area and stretching the sell safe to the 30% area works better. However this is far from being conclusive and reliable to produce the same results in the future because I have only tested it on one stock during one very limited period of time. Whether that works for the same stock during a different time period or whether it works again for any stock or index is just unknown and I'm not concluding anything yet until I can do enough testing to be satisfied the results can be replicated. This stuff is fun, isn't it? HiTech

To: Jack Jagernauth who wrote (8978)	10/20/1999 10:48:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Jack, Yes, letting the minimums you trade get to be too large a percentage of the total equity value does throw AIM into a bit of confusion. This isn't an error in the AIM programs, but just how it works. AIM's meant to be an incremental manager working with small portions of inventory at a time. For instance, if you were to trade 100 shares of a 400 share position, it would knock the Hold Zone way out of whack. After all, you'd not only have to satisfy SAFE, but you're now trading 25% of your total holding. Mr. Lichello's suggestion of about 5% of the equity value for minimum trades is about right. It works with 10% or higher, but the Hold Zone moves further with each trade. Looking at how good Mr. Lichello's advice was - even without computers to assist him - always amazes me. When I go back and re-read his book after my real life experience it always makes more sense than when I first read it. BTW, how's your brother doing with AIM? Best regards, Tom