Core Position Trading Buy Low Sell High Stock Trading ETF Trading | AIM Algorithm Considerations and Anomaly Workarounds

While Robert Lichello's Automatic Investment Management (AIM) for stocks, exchange traded funds (ETFs), and mutual funds generally works well, in some cases there can be problems. 

Bookmark and check back to this page every month or so to see any latest comments and links to pages offering possible solutions.

Some problems (anomalies) to be addressed and the workarounds to be included or referenced in the future in this page, pending encouragement ($) through a sufficient number of program purchases:

AIM Anomalies (Core Position Trading AIM Anomaly) -- #1
Excess cash after a rise.

AIM Anomalies (Core Position Trading AIM Anomaly) -- #2
Requiring too much cash on a decline.

AIM Anomalies (Core Position Trading AIM Anomaly) -- #3
Trading range eventually PoCo ratchets out of trades.

AIM Anomalies (Core Position Trading AIM Anomaly) -- #4
Deciding how much to start with and what % split for initial cash vs stock.

AIM Anomalies (Core Position Trading AIM Anomaly) -- #5
Size of moves required on reversal transactions (a buy after a preceding sell or a sell after a preceding buy) to ensure profits --  Note that in the main Lichello "what if" example, that the reversal moves are 25% (from 4 to 5) and 20% (from 10 to 8).  Minimum price moves required to take a reversal transaction depend on both the SAFE percentages and minimum transaction amounts you set.  Keep in mind that you may not want to take a particular minimum price move reversal transaction.  You may want to wait for a somewhat larger move.  That could depend on the real (after commission) price, the amount of money involved, etc.

AIM Anomalies (Core Position Trading AIM Anomaly) -- #6
Size of subsequent moves in the same direction (a buy after a preceding buy or a sell after a preceding sell) to ensure profits --  Note that in the main Lichello "what if" example, that moves in the same direction are very large:

20% (down from 10 to 8)
37.5% (down from 8 to 5)
20% (down from 5 to 4)
60% (up from 5 to 8)
and 25% (up from 8 to 10)

Order the AIM "Bible" now from Amazon

If you would settle for getting rich steadily and surely (instead of trying for overnight and resulting in never), you need to read the book  How to Make $1,000,000 in the Stock Market Automatically!   by Robert Lichello.  Don't let the "hokey" title put you off.  The book was first published in 1977 and is now in its Fourth Revised Edition (December 2001).  It's available on Amazon.com for about $8.00.  [2010-04-08]

In this best-selling book, Lichello details his "Automatic Investment Management" (AIM) method.  AIM is perhaps the most popular and well-known Core Position Trading method with probably thousands of successful practitioners.  For the basics of Robert Lichello's AIM methodology, see AIM Basics.

Tags:   Automatic Investment Management (AIM),  buy low sell high,  Core Position Trading (CPT),  Robert Lichello, 

Core Position Trading
Main Page

Core Position Trading

Core Position Trading Overview
Core Position Trading Alternative to Technical Analysis

Automatic Investment Management (AIM) Basics

Automatic Investment Management (AIM) Basics
Volatility is Your Friend™
Fixed Commissions Effects and AIM
AIM Anomalies
SAFE and Quantity to Sell at Various Prices (chart)
SAFE, PoCo, Prices, and Minimum Orders (charts)

AIM Stock & ETF Trading Transaction Calculator

AIM Stock & ETF Transaction Calculator Description
* ORDER Stock & ETF Transaction Calculator *

AIM Transaction Calculator User Document
AIM Stock & ETF Trading Account Setup
Price Move Required for AIM Stock or ETF Transaction
Commission Effects on Transaction Prices and Amounts
AIM Transaction Calculator Price Range Calculation
Price Range Calculation for Desired Percent Price Move
VEALIES - Adjusting AIM Account Portfolio Control
Indexing Portfolio Control for Inflation (Cost of Living)

AIM Stock & ETF Position Overview Spreadsheet
Position Overview Spreadsheet User Document (old)
Position Overview Spreadsheet User Document (new)

Lichello's 'By the Book' Trade History Spreadsheets

AIM 'By the Book' Trade Spreadsheets Description
* ORDER AIM Trade History Spreadsheets *

AIM e-gold Trading Transaction Calculator

Because of actions by the increasingly out-of-control fascist U.S. Government, the AIM e-gold transaction software is no longer usable.  Regardless, you may be interested in some of the information about gold, money, and government fiat currency debasement that robs you of capital and purchasing power on those pages linked to from this section, especially in the User Document.

AIM e-gold Trading Transaction Calculator Description
* ORDER e-gold Transaction Calculator *

AIM e-gold Transaction Calculator User Document

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NOTICE!
Since the 1st Amendment to the U.S. Constitution is null and void,
except as still permitted by law by out-of-control U.S. federal, state, and local governments, the following disclaimer is provided:

This web page or web site is not to be construed as providing investment advice.  This material is provided for informational, amusement, and educational purposes only.  Consult a duly (dully) trained, authorized, credentialed, licensed, and brainwashed establishment professional or government lackey before engaging in any financial transactions relying on this or any other information.