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

To: Bernie Goldberg who wrote (10404)	3/8/2000 7:28:00 PM
From: labestul	Read Replies (3) \| Respond to of 18928

Thank you Bernie for your detailed comments. I don't believe that I am intermingling two methods as you suggested. I did mention the Money Spinner only as a side comparison. In any event I performed my same calculations using the two minimums that you used (i.e. at least $500 per trade and at least 5% of the shares held prior to the trade). I carried my calculations through to $3.25 (i.e. your first four trades) and I almost exactly match your results. The one difference is that trade 2 was for 148 shares (as in your example) but at $3.75 rather than at $3.875 ... I rechecked this and I suspect that your $3.875 is a typo. If it is not then I have no idea how it was calculated. If this really is a typo please confirm it. If it is not ... well we'll cross that bridge ...etc. The Money Spinner example has far fewer trades because of the MBI (Minimum Buy Interval). The first buy point was for 100 shares at 4.125. The MBI is defined as the initial price (i.e. $5.00) minus this price (i.e. giving $0.875). The Money Spinner requires that all subsequent buys must take place at a price lower than the last trade price by an amount at least equal to the MBI. In my example this lead to only two trades rather than the four in your example. I think therefore that your two minimums are probably better. This is why I said that the Money Spinner approach was well spaced but possibly not optimum. I suspect that your example is closer to optimum whereas my various AIM examples using different minima may have been less optimal (???) than the Money Spinner. This leads to the rhetorical question ... what does OPTIMAL mean in this context and how does one determine the OPTIMAL strategy??? This is a question which I am exploring but I nothing concrete to say at this point. Thanks Again for your response to my post, Barry Savage mailto:bv@bsavage.net bsavage.net