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


To: labestul who wrote (11972)7/5/2000 10:32:15 PM
From: Jack Jagernauth  Read Replies (1) | Respond to of 18928
 
Hi Barry,

Thanks for your in-depth analysis and post; it's good to hear from you.

From where do you get the claim that 8 might be the most profitable entry point and even if it is which 8 do you mean?

I kinda dreamed it up, Barry. No, actually, there was some discussion about the above on the AIM BB a while back. I have not done that particular simulation myself and don't know if an ascending or descending 8 was mentioned.

In practice I would always go with the method that gave me the best ROCAR and adjust overall returns by carefully watching my cash portion.

To my mind, that's the bottom-line !

Thanks again,

Jack



To: labestul who wrote (11972)7/12/2000 5:56:13 PM
From: Bernie Goldberg  Read Replies (1) | Respond to of 18928
 
Hi,
I would like to try and clarify what seems to be an inordinate amount of confusion over a post that I made some time ago. I was the the person who was curious as to what would have happened if a person had not invested at precisely the same time that Mr. L. did in his hypothetical situation. The reason I did the research was that at that time there was a tremendous amount of discussion here on the thread about being sure to start AIMing at the lowest price. As a matter of fact it still is one of the more popular topics of discussion here, as well as in most threads on SI.
What I found was that in one frame of reference it really didn't matter where one was in the cycle because everyone using AIM makes money with it.Which $8 price ascending or descending is really irrelevant to the point I was making. My most interesting discovery was that when starting at the lowest/best?? price the return from AIM was the lowest of all of the periods in the cycle.

Jack wrote:"Since AIM is a buy low / sell high system, why would I knowingly start at 8? It seems illogical to me."
He is correct about AIM being a buy low / sell high system, but that doesn't kick in until the system has been in operation for a period of time. Pick any 4 out of Mr. L's sequence it doesn't make a bit difference which one. It is important that you complete the same number of periods. It will become very clear that there is no benefit in the AIM system in making a fetish out of buying low at the beginning of AIM investing.