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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 (14109)	12/27/2000 4:39:54 PM
From: OldAIMGuy	Respond to of 18928

Hi Bud, That's the idea. I've done some back testing with it on more diversified mutual funds (with a smaller Buy SAFE) and was only disappointed in that there were fewer total buys. However, by doing so that experiment would have allowed for a lower total cash reserve at the peak of the market. So, if we can conserve our spending and get away with a bit less cash total it improves our overall yield. I hesitate to give this status as a "new rule" as it's still experimental. I'm applying it to stocks and funds but with different total SAFE range for individuals. That makes it subjective a bit. Generally 0.0% Sell SAFE for stocks and funds and 20% Buy SAFE for Stocks and 8% to 10% for diversified mutual funds. As I get more time under this method, I'll let you know if I feel it's a rational way to go. The size of the Hold Zone doesn't really change that much, but the speed at which money is spent is slowed a bit. For those 2X NDX funds we may have to expand the Buy SAFE to some value higher than 20%. That will take a bit of modeling. Best regards, Tom Best regards, Tom