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

To: jaser20 who wrote (18642)	7/29/2020 8:34:56 AM
From: OldAIMGuy	2 Recommendations Recommended By Ken Adams Zen Dollar Round Read Replies (2) \| Respond to of 18928

Good morning Jeff, Re: Using AIM on a portfolio construct using ETFs................ Yes, I have several different portfolio strategies based upon ETFs. One is designed in a similar fashion to Mr. Merriman's "Ultimate Buy and Hold Strategy" (UBH for short) merriman.com I started with the UBH model around 2007 but didn't complete funding of it until early 2009. It's been chugging along happily ever since. My version could be called "ultimate buy and AIM" (UBA) as each sleeve is its own AIM engine. It provides a nice income stream as I tilted the ETF selection toward the income side, especially for the ex-US sectors. This has helped to smooth things a bit in recent times. ETFs are a bit slow motion in that they are widely diversified. That's okay. AIM does fine and reacts correctly when things are at their extremes and ignores the little wiggles along the way. Generally I put the AIM internal settings a bit more on the 'aggressive' side. I set Buy SAFE to 10% and Sell SAFE to zero. Most of the positions trade 5% of the Portfolio Control as the minimum dollar amount. I then put in place a ceiling on the Cash Reserve. If AIM's satisfied that ceiling then I quit selling and "let it ride" until cash is diluted as a percent by further ETF price appreciation. Those Sell Market Orders that would exceed the ceiling cash target I divide by 2 and add the result to Portfolio Control (see "vealie" on this Q&A AIM page investorshub.advfn.com ). This keeps the portfolio growing nicely while carrying a reasonable level of cash during long bullish periods. Further, to manage the use of that cash during market declines, I limit sequential buys to once in 30 days. The logic is that if I'm limiting cash buildup then I have to be prudent in its use during bearish periods. A suggested ceiling for cash as a percentage of total value would be 30% as a fixed value or you could use something like the v-Wave market risk indicator as a floating cash ceiling. So, YES, AIM is happy to manage individual ETFs and will offer all its usual benefits. I'd be happy to share the list of ETFs I used for UBA if you're interested. Best regards, OAG Tom