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

To: LemonHead who wrote (17174)	10/27/2001 11:40:21 AM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Good morning Keith, Got all the boxes unpacked yet? Thanks for the offer. I've been thinking about the multi-tier rules for the Purchasing Dept. for some time. I'm beginning to think about setting the tier plateaus by a formula tied to individual AIM account value. If the decline in account value is X, then spend up to Y amount of the Cash Reserve on a weekly basis. When the decline is 1X to 3X spend cash on a monthly basis. When the decline is 3X or higher, then spend only quarterly. Something like that. I originally though of just dividing the Cash Reserve up into thirds, but am more inclined to handle the amount that AIM spends by the time interval which has passed since the previous purchase. I have lots of histories on which to base any final decision. We could spend some time dissecting some of those and trying various What If tests to see what fits best. What I want to preserve is "responsiveness" to minor blips and dips without burning all available cash in too big a hurry when the long term trend turns against us. Like with the GNSS history, those shares I purchased at $9.125 are sweetest. AIM makes the biggest purchases when the discount is the biggest - assuming there's still cash available. :-) We don't want to lose AIM's proportionality either. We want it to buy most heavily at or near the bottom. We don't mind the first buy at $15 on the way from $20 to $10 if its small. We want to buy the most at $10 however. I'd welcome help on analyzing this. Thanks for the offer. After two or three days of very high winds, cool temps and periodic rain, it's nice and clear today. I think I'll find an excuse to be outside for a while. Happy Weekend, Tom