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

To: Bernie Goldberg who wrote (4640)	5/2/1998 9:45:00 AM
From: OldAIMGuy	Respond to of 18928

Hi Bernie, Yes, Both Bob Norman and I have fiddled with negative values for SAFE (Buy Resistance). On smaller accounts I've used up to -9 for the BUY side. After much discussion, he opted to leave the use of negative numbers in place in the Newport Program. We talked much about Pandora's Box!! In your case, if we were to add the Buy and Sell Resistance together, you end up with a net of 6. In other words, you could use 0.0 Buy SAFE and +6 Sell SAFE and end up with nearly the same "hold zone." It won't be exact, but close. The problem with using a negative SAFE value seems to be similar to a "positive feedback loop" in a technical term. It gets the brakes pumping pretty hard with AIM. It has the effect of exhausting the Cash Reserve rather rapidly in a down-turn. As long as you are aware of this, it can be a way of letting AIM become very aggressive in its buying. Use of negative SAFE values should come with a warning label - something like what's on ciggarette packages!! Or maybe something like "VIEWER DISCRESSION IS ADVISED!!!" If you have WR's Excel spreadsheet, give negative SAVE a try just so you understand how it works. Best regards, Tom