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

To: budweeder who wrote (13321)	10/23/2000 3:15:04 PM
From: OldAIMGuy	Respond to of 18928

Hi Bud and Jack, I originally (back in my 123 Lotus days) looked at the 26 week moving average as a benchmark for what AIM is doing. I had enough exposure to trading systems that I thought it would be interesting to see AIM's relative efficiency compared to a basic smoothed line. What I found was that AIM usually traded on what I consider the proper side of the line and on the proper portion of the "supply/demand" curve. In other words, AIM was always buying shares when there was heavy supply at reasonable prices and always selling when there was plenty of demand and generous prices. This always seemed to me to be the most significant difference between AIM and most technical methods, especially momentum. With momentum theory, traders are asked to build positions in "high demand" stocks and sectors when prices are rising. It then says to be a seller when demand weakens and supply is large. Most TA measures don't have multiple buys or sells, but alternating ones. All or nothing is the M.O. Some "scale trading" methods are around, but they are more like AIM than TA. I'm not sure much would be learned from many TA signals. In essence we are usually doing the opposite of what TA practitioners are doing. Well, maybe that would be of some value. If we knew all the lemmings were jumping off cliffs, we'd feel better about buying up fresh lemming at a discount. :-) I'd suggest that if we can get some correlation between some TA factors and what we do with AIM, then those items might be useful. I wouldn't mind seeing a selectable Moving Average range. After all, not all our stocks dance to the same beat. Best regards, Tom

To: budweeder who wrote (13321)	10/24/2000 12:27:31 AM
From: Jack Jagernauth	Read Replies (1) \| Respond to of 18928

Hi Bud, My wish list is maybe a bit sacrilegious, but not being a religious type myself, the only way I am going to make it is if the powers that be have a sense of humor :-) What I would really like to see built into one of the AIM software packages are a few simple ways of determining entry and exit points (of course, nothing in life is perfect, including AIM). In taxed-deferred accounts, there are no immediate tax implications and one could exit an AIM account without major tax consequences. Going back to basics, AIM by the book was meant to beat B&H. There has to be a way to use AIM to beat B&H more often than not. One way might be to use entry and exit points with our AIMing. Should a few simple indicators be included in the AIM software to help in that regard, I feel that it would be a plus. Regards, Jack