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Strategies & Market Trends : Ultra OTC Fund - UOPIX -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (1099)	1/3/2001 11:33:12 PM
From: OldAIMGuy	Respond to of 2063

Hi Jim, Actually that's not too far off the mark. I have a basic and simplistic example at the web site... aim-users.com It runs just one cycle, but will give you the idea. The basic pieced of the algorithm are there and it will save you reading the whole book! :-) If $10K went to about $15K you'd probably sell off about $4K's worth, returning your level at risk back closer to the $10K you were initially willing to risk. You be storing away the $4K for rainy days and FED rate hikes! If the remaining $10K dropped to $4.5K on the next stroke it would have you kick in the $4K set aside plus a portion of whatever cash reserve you had to start. Mr. Lichello initially recommended 50%, but later revised it down to 33% starting cash. In my opinion, high beta stocks and certainly UOPIX deserve a 50% Cash Reserve because of the large trade range. Best regards, Tom