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

To: OldAIMGuy who wrote (5063)	7/14/1998 10:52:00 PM
From: Dataminer1	Read Replies (1) \| Respond to of 18928

Hello Everyone, I'm a little curious as to how everyone views the idea of the "cash reserve" possibly going negative. Do you actually put in the extra money and how does that affect the advice given by Newport? In my PCA system spreadsheet, I have adjusted the formulas to prevent the cash from running out. If a trade is signaled that requires more cash than is currently available, it is ignored. This does not seem to affect the normal performance of the system, however I will need to do a little more detailed research when I get time. By not adding the extra cash, you run the risk of not buying more shares when the price has dropped dramatically ( which it would have if the cash is spent ), however it prevents you from throwing good money after bad for a stock that never comes back ...ie BOST As far as the idea of "adjusting" the Port. Control amount, I can easily make this an input selection on my system. I will do some tests to determine the viability of adjusting the port. control, however I seem to remember tinkering with it a long time ago and realizing it is difficult to optimize for every particular situation and it adds another "subjective" parameter to a system designed to be highly "objective". I am adding the adjustable "buy safe" and "sell safe" to my software, however this adds a layer of complexity to the system, which was intended to be used by those not as familiar with AIM as the rest of us. Tom, I am as surprised as you to see the sudden surge in popularity of this thread and would like to thank everyone for their valuable insight. It would be an interesting exercise to try and find the stock that would have generated the most profits using the AIM algorithm over the past couple of years. Maybe I will go in search of it this weekend. Take care and good luck to us all in this "earnings release season" Bill