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

To: DougBurkeAZ who wrote (18529)	10/27/2009 7:25:05 PM
From: doniam	Respond to of 18928

Thanks

To: DougBurkeAZ who wrote (18529)	3/23/2010 5:26:50 PM
From: OldAIMGuy	Respond to of 18928

Hi Doug, Sorry for the delayed response here on SI. I'd lost my password some time ago and hadn't been able to log in. I read your article and feel it does a nice job using a very simple investment (SPY) and standard AIM settings from Mr. Lichello's book. During the time in question, the SPY was essentially a zero slope price if one uses the beginning and end points and ignores the middle roller coaster! AIM tends to do rather well in such times. We talk about "Frequency and Amplitude" of price change when we discuss investments appropriate for use with AIM. Higher frequency or amplitude (or both) improve AIM's volatility capture function. Thanks for carrying AIM to a new audience. Your article does well. Here's some graphs of SPY when updated on a weekly basis and with modified SAFE. We chose a slightly lesser total SAFE (buy and sell SAFE) to encourage AIM to tap the volatility a bit more frequently than your example. Starting point for SPY was $138/share in this first graph. These come in ~3.25 year segments (I apologize!). And, finally, the latest three years: Price/Share is still 15.5% below the starting point. With AIM's help, this simulation is sporting a 10% profit. (all this is exclusive of interest, dividends and commission costs) So, Mr. Lichello would have salvaged a losing experience and at least given us a modest profit. Further, the SPY shares are still about 25% off their October, 2007 high water mark while this account is off just 12.2% with AIM's help. In this example, we used "Buy SAFE" at 10% but "Sell SAFE" at zero. We used a minimum trade size of 5% of Portfolio Control as a further condition. Also, it didn't start with quite 50% cash in reserve. Again, sorry I didn't see your post until today. Best regards, Tom