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

To: aptus who wrote (14030)	12/21/2000 2:02:55 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Mark, In more recent times I've made some experimental progress using my Idiot Wave setting as the limit of the size of the Cash Reserve and "vealies" as essentially the sole resistance to selling. I've then used the entire SAFE value (the sum of what would usually be the buy + sell SAFE values) on the Buy side. (example - if 10/10 had been my long term setting, then it would be changed to 20/0 Buy/Sell. It occurred to me that if I'm going to limit the ultimate expansion of the Cash Reserve, then I also needed to protect the liquidity with greater resistance to buying. Since selling makes no change to Portfolio Control, there's really no problem here. But buying does make a significant change each time by increasing PC and therefore encouraging further buying. My early work with mutual funds showed that anything that helped to make better use of the cash was a good thing. However, that was with no specific limits on the size of the cash reserve. So, if you would like to factor in the Idiot Wave data as well, that information back to 1982 is available at aim-users.com This may help you in your evaluations. Recently a fellow wrote and showed me that using my Idiot Wave data since 1982 he would have beaten AIM, and most other "switching" or trading systems quite handily. He used the IW's High Risk and Low Risk data (with a bit of tweaking) to go 100% invested and 100% cash. There were very few trade points in all that time the way he was using the data. (I'll have to check his message, but I think it was 53% cash for switching to cash and ??? for switching back). I've not chosen to use the IW's data that way, but it was an interesting study. It also helped me to feel better about all the time I've put into the IW over the years!!! :-) Best regards, Tom