AIM  Stock/ETF  Fixed  Commission
Transaction  Calculator
User  Document

This program (AIM) calculates the quantity of a stock (or ETF or other mutual fund) to buy or sell from time to time depending on the current price and your past transaction history with the stock, to ensure long-term profitability.  Using this program properly will "FORCE" you to REALLY Buy Low and Sell High.

Using this program, you can enter a price to determine if you should buy or sell and, if so, how many shares.

The AIM program allows you to calculate potential buys and sells in advance, so you can put in GTC Buy Limit and Sell Limit orders with your broker.  Then you can check during the day or evening to see if one of your orders was filled.  If so, then you calculate and place new Buy and Sell orders, depending on the new AIM parameters.

(Warning:  Do NOT use Market Orders for your regular AIM Buys and Sells.  You should use Limit Orders, GTC, with AIM.  In this manner, you will always be guaranteed a favorable fill when your order is filled, assuming that your price is hit and filled.)

This program is an easy to use implementation of the method developed by Robert Lichello in his book How to Make $1,000,000 in the Stock Market -- Automatically!   (Don't be put off by the hokey title.  If you follow the method you WILL Buy Low and Sell High.)

The AIM program considers the effect of commissions on the amount to buy or sell at various prices, which Lichello did not.  Considering the effect of commissions gives a "real (net) price", allowing more precision in your orders and ensuring that even very small trades will give good portfolio results.

Lichello used a common, fixed Buy and Sell "SAFE" percentage.  This AIM program allows separate Buy and Sell "SAFE" percentage values which you may adjust for different volatility and/or market trending conditions.

Minimum Buy and Sell orders of as little as $120 are feasible if you use a discount broker which charges commissions in the range of $7.00 to $12.00 or so per transaction, including odd-lot limit orders.  The program also uses minimum Buy and Sell order values (dollars, percentages and/or quantities) in the calculations.

It is not the purpose of this document to detail the use of the AIM program in real trading.  For that, you should get a copy of Lichello's book (available from Amazon) and first read it, and only then contact me for additional information regarding real-life use and caveats.  (For example, the "Portfolio Control" parameter is of vital importance, but I will not discuss that with you until you can ask me intelligent questions about it -- or are willing to pay me a fee of $99.99 per hour for consultation and tutoring.    )

Installation is direct.  There are no buggy "install" and "uninstall" programs to deal with.  Installation does not screw around with the Windows Registry.  (Whoever came up with that concept at Microsucks ought to be shot.)  To install the program, you, yourself, simply create a directory (folder), wherever you want and copy the downloaded files into it.  Basic computer literacy is assumed.

Create a directory (folder) of whatever name you want, wherever you want.  Say you use the name CorePositionTrading.  It can be in the root directory or under some subdirectory.  I'll assume you use the name CorePositionTrading.  In the steps below, read whatever name you chose instead of that.

Under CorePositionTrading, create a subdirectory of whatever name you want.  I suggest AIM_Calc.

I'll assume you use the name AIM_Calc.  In the steps below, read whatever name you chose instead of that.

Copy the .exe file FixedCBS.exe into the AIM_Calc subdirectory.

You can then run the program starting from DOS or the Windows Explorer (NOT Internet Explorer).  You could also set up a shortcut on your Windows Desktop.

Note:  If you get an error regarding a missing .dll file when you attempt to run the program, you will need to get that .dll file.  The file is MSVBVM50.DLL, which is necessary to run this and some other Visual Basic programs.  You could get it from who knows where on the Microsucks site.  It will be easier to get it from my web site.  You can get it there in two ways:

The .dll file itself (1,334,032 bytes),  http://www.bean-d.com/download/msvbvm50.dll
A zip file (682,820 bytes),  http://www.bean-d.com/download/vb_run.zip

Save whichever file you download in your AIM_Calc subdirectory.  If you download the zip file, unzip it in that directory to extract the .dll file.  Leave the file(s) in the AIM_Calc subdirectory.

The first time you run the program, there will be some message boxes about creating data files.  (The program creates a Data subdirectory under the subdirectory you created (AIM_Calc).  It then creates initial Default Parameters and Minimum Transaction Mode files in the Data subdirectory.)  Just click "OK" as necessary.

After you start the program, you should get a simple multi-colored screen.  Each box in the "Default Parameters" section should contain numbers.  Most boxes in the other sections should be empty or contain "None".

You may change the Default Parameters section values.  You can save the new values by clicking on the "Save Defaults Shown" button.  If you change any Default Parameter values, you should redo any previous calculations of interest to you.

Setting the Minimum Order Calculation Mode:

In the Default Parameters section, there are boxes corresponding to the Minimum Transaction calculation modes for both Buy and Sell.  The initial default mode is set for "Fixed $ Amount" -- shown as "$ Amt".

There are four modes.  Buy and Sell Minimum Transaction calculation modes can be set independently to any of the four modes:

• "Fixed $ Amount" -- fixed dollar amounts for the minimum transactions -- shown as "$ Amt".
• "% of PoCo" -- percentage of Portfolio Control -- shown as "PoCo %".
• "% of Stock Val" -- percentage of Stock Value (SV) -- shown as "SV %".
• "% of Total Val" -- percentage of Total Value (SV + Cash) -- shown as "TtlVal %".

These modes may be set from the menu selection "Options | Minimum Order Mode" by clicking the selections you want, then by clicking "Save".

For each Mode chosen, enter an appropriate value in the corresponding Default Parameters box and then "Save Defaults Shown", if desired.

Calculate for Price Entered:

To see if AIM will "permit" a transaction at a price you are considering, you will use the "Single Price Calculation" area.  The program will determine if a transaction is possible and, if so, will calculate how many shares to buy or sell at the price you enter.

Enter appropriate values into the pink/red boxes for "Qty of Shares Held", "Portfolio Control", and "Transaction Price".  (Entering the "Stock Symbol" is optional.  You need to enter a "Cash" amount only if you are using Total Value -- Stock Value (SV) plus Cash -- to determine a Minimum Transaction.)  Then click on "Calculate on Transaction Price".  The result boxes will be filled if a transaction is indicated, depending on the values you entered and upon the current Default Parameter values and Minimum Transaction modes.  If a transaction is not indicated, you will be notified by a message box and the results boxes will remain blank and/or display "None".

Below are three example calculations:

        Default Parameters used in all examples (Notes 1 & 2):
                                BUY        SELL
          Commission:           $12.00     $12.01
                                ($ Amt)    ($ Amt)
          Minimum Trans:        $120.00    $120.00
          Minimum Qty:          1          1
          SAFE:                 10.0%      10.0%

        - - - - -
        Example 1 (A SELL transaction):
          Stock Symbol:         WXYZ
          Qty of Shares Held:   123.0000
          Portfolio Control:    $2534.00
          Cash:                 $2000.00
          Transaction Price:    $  25.000000

                                Exact         Exact         Rounded
                                (no comm)     (w/ comm)     (w/ comm)
          Stock Value (SV):     $3075.00      $3062.99
          Sell Advice:          $ 541.00      $ 528.99
          SELL SAFE:            $ 307.50      $ 306.30
          Market (SELL) Order:  $ 233.50      $ 222.69      $ 212.99
          Qty to SELL:          9.34          9.39          9
          Real (Net) Price:     $  25.000000  $  23.720713  $  23.665556
          Action:               Sell 9 [Stock] LIMIT 25.00

        - - - - -
        Example 2 (No transaction):
          Stock Symbol:         WXYZ
          Qty of Shares Held:   123.0000
          Portfolio Control:    $2534.00
          Cash:                 $2000.00
          Transaction Price:    $  20.000000

                                Exact         Exact         Rounded
                                (no comm)     (w/ comm)     (w/ comm)
          Stock Value (SV):
          BS Advice:
          SAFE:
          Market Order:         $ None        $ None        $ None
          Qty Buy or Sell:      None          None          None
          Real (Net) Price:
          Action:               None

          (You will also get a message box stating
           "Possible Buy transaction amount ($) not large enough")

        - - - - -
        Example 3 (A BUY transaction):
          Stock Symbol:         WXYZ
          Qty of Shares Held:   123.0000
          Portfolio Control:    $2534.00
          Cash:                 $2000.00
          Transaction Price:    $  17.000000

                                Exact         Exact         Rounded
                                (no comm)     (w/ comm)     (w/ comm)
          Stock Value (SV):     $2091.00      $2078.99
          Buy Advice:           $ 443.00      $ 455.01
          BUY SAFE:             $ 209.10      $ 207.90
          Market (BUY) Order:   $ 233.90      $ 247.11      $ 250.00
          Qty to BUY:           13.76         13.83         14
          Real (Net) Price:     $  17.000000  $  17.867675  $  17.857143
          Action:               Buy 14 [Stock] LIMIT 17.00

        - - - - -
        Note 1:  Commissions are typical of on-line discount brokers, which
        generally range from $7.00 (Scottrade) to $12.00 or so.
        I have added $0.01 on the sell side for the SEC fee (which actually
        could range from $0.00 and up, depending on the transaction size).

        Note 2:  The Minimum Transaction mode for BUYS and SELLS can be set
        independently for various values of a fixed dollar amount ($ Amt),
        a percentage of Portfolio Control (PoCo %), a percentage of the
        Stock Value (SV %), or a percentage of the Total Account Value (TtlVal %).
      

Next Possible Sell or Next Possible Buy:

To determine the "Next Possible Buy" or "Next Possible Sell" transactions, you will again use the "Single Price Calculation" area.  The program will determine the lowest permissible Sell price or the highest permissible Buy price, whichever you are interested in, and the corresponding quantity of shares to buy or sell.

Enter appropriate values into the pink/red boxes for "Qty of Shares Held" and "Portfolio Control".  (It is not necessary to enter a "Transaction Price" or to delete a price that may have been previously entered; the new "Transaction Price" calculated will be displayed.)  Then click on "Next Possible Sell" or "Next Possible Buy".  The various results boxes will be filled with the results of the calculation, based on the values you entered and upon the current Default Parameter values and Minimum Transaction modes.

Below are two example calculations:

        Default Parameters used in all examples (Notes 1 & 2):
                                BUY        SELL
          Commission:           $12.00     $12.01
                                ($ Amt)    ($ Amt)
          Minimum Trans:        $120.00    $120.00
          Minimum Qty:          1          1
          SAFE:                 10.0%      10.0%

        - - - - -
        Example 1 (Next Possible Sell):
          Stock Symbol:         WXYZ
          Qty of Shares Held:   123.0000
          Portfolio Control:    $2534.00
          Cash:                 $2000.00
          Transaction Price:    $  24.080000 (Note 3)

                                Exact         Exact         Rounded
                                (no comm)     (w/ comm)     (w/ comm)
          Stock Value (SV):     $2961.84      $2949.83
          Sell Advice:          $ 427.84      $ 415.83
          SELL SAFE:            $ 296.18      $ 294.98
          Market (SELL) Order:  $ 131.66      $ 120.85      $ 132.47
          Qty to SELL:          5.47          5.52          6
          Real (Net) Price:     $  24.080000  $  21.903217  $  22.078333
          Action:               Sell 6 [Stock] LIMIT 24.08

        - - - - -
        Example 2 (Next Possible Buy):
          Stock Symbol:         WXYZ
          Qty of Shares Held:   123.0000
          Portfolio Control:    $2534.00
          Cash:                 $2000.00
          Transaction Price:    $  17.930000 (Note 3)

                                Exact         Exact         Rounded
                                (no comm)     (w/ comm)     (w/ comm)
          Stock Value (SV):     $2205.39      $2193.38
          Buy Advice:           $ 328.61      $ 340.62
          BUY SAFE:             $ 220.54      $ 219.34
          Market (BUY) Order:   $ 108.07      $ 121.28      $ 119.58
          Qty to BUY:           6.03          6.09          6
          Real (Net) Price:     $  17.930000  $  19.898851  $  19.930000
          Action:               Buy 6 [Stock] LIMIT 17.93

        - - - - -
        Note 1:  Commissions are typical of on-line discount brokers, which
        generally range from $7.00 (Scottrade) to $12.00 or so.
        I have added $0.01 on the sell side for the SEC fee (which actually
        could range from $0.00 and up, depending on the transaction size).

        Note 2:  The minimum transaction for BUYS and SELLS can be set
        independently for various values of a fixed dollar amount ($ Amt),
        a percentage of Portfolio Control (PoCo %), a percentage of the
        Stock Value (SV %), or a percentage of the Total Account Value (TtlVal %).

        Note 3:  Blank or any value you may have entered in the "Transaction
        Price" box will be overwritten by the calculated price for the
        Next Possible Sell or Next Possible Buy.
      

Results Columns Explanation:

The results area of the screen displays three columns of figures:

The left column shows the calculations for the case of the commission being zero, regardless of values in the Default Parameter section, for reference.  This is the "classic" or "by the book (BTB)" AIM calculation.

The middle column shows the exact values, including the effects of the commissions.  You will notice that the quantity to buy or sell is slightly different from that for the "no commission" calculation.  And, you will notice that the Real (Net) Price, including the commission, is different from the Transaction Price, i.e., the Real (Net) Price with no commission.  In the case of small quantities, this difference will be substantial, percentagewise, and will affect your profitability if ignored.

The right column shows the rounded quantity and the corresponding Real (Net) Price and Market Order corresponding to that rounded quantity and the Transaction Price shown.  That rounded quantity and the Transaction Price -- the same as the Real (Net) Price if there was NO commission -- forms the basis for the "Action" box display.

Price Range Calculation:

For the Price Range Calculation, enter something well above the Next Possible Sell Price for the "Maximum Price", and something well below the Next Possible Buy Price for the "Minimum Price".  I generally use an "Increment" of $0.01 (1 cent), but if you enter a large price range, you may want to use $0.05 or some larger Increment.  Click on "Range Calc"; completing the calculation may take some time, during which time the cursor will be in "hourglass" form.

After the Price Range Calculation is complete, you will then be able to view or print out the results in WordPad.  Just click "Yes" in the popup message box to access the calculation results in WordPad.  For this, WordPad opens the current version of file "PriceLst.dat" just created by the program.

A sample Price Range Calculation file is at aim_rangecalcex.txt

If you have entered a large price range, you may get more results than you want.  You can just delete the excess lines in WordPad.  You can also save the file, edited or not, under another name.  If you do want to save the results, you will need to save the file under another name, as the program will overwrite the "PriceLst.dat" file during the next time you do a price range calculation.  Make sure to save the file as plain Text, NOT as a Word document or as "Rich" text.

You will notice in the WordPad display or its printout a price gap between the Buy and Sell sections.  That is the "No Transaction Zone", sometimes called the "Hold Zone", which is determined by your SAFE and Minimum Transaction settings.  If the range of values does not show results of interest to you, CLOSE WordPad, enter more appropriate values in the Calculator boxes, and re-calculate and re-view.  Note:  WordPad MUST be closed before calculating for another price range, in order to obtain a valid new Price Range Calculation "PriceLst.dat" file for display in WordPad.

The "PRICE Quote (Trans)" column corresponds to the various broker prices at which you might place a Limit Buy or Limit Sell order.

The next two columns, with the common heading "EXACT QUANTITY", show the "Qty" and "Real (Net) Price" for each of the row PRICE entries.  The results displayed include the effects of the commissions.  The entries in these columns correspond to the quantity and price entries in the middle column of the Results area of the program main screen.

The next three columns, with the common heading "ROUNDED QUANTITY", show the Qty (rounded), the Real (Net) Price for that rounded quantity, and the corresponding Mkt (Net) Order corresponding to each of the row PRICE entries.  The entries in these columns correspond to the market order, quantity, and price entries in the right column of the Results area of the program main screen.

A sample Price Range Calculation file is at aim_rangecalcex.txt

On the main screen in the "Price Range Calculation" area is a box labeled "Previous NET Price".  You may (optionally) enter a price in that box.  If you do, when you do a Price Range Calculation and view the results, you will see two more columns of results displayed for each PRICE.

The "% diff" column lists the percentage difference between the "Previous NET Price" you entered and the "ROUNDED QUANTITY Real (Net) Price" calculated for that line.  Note:  The previous price you enter must be a NET price (including the effects of the commission), OTHERWISE THE RESULTS WILL BE MEANINGLESS!!

The "$ diff" column lists the dollar amount of the difference between the "Previous NET Price" you entered and the "ROUNDED QUANTITY Real (Net) Price" multiplied by the ROUNDED Quantity, calculated for that line. 

I repeat, it is the NET prices you pay and receive that are important, not the broker quote/transaction prices.  Yes, the broker quote/transaction prices are what you have to use with the broker.  But, your profits (or losses, if you don't consider NET prices) are determined by your NET prices.

To exit the program, simply click on the "File | Exit" menu selection.

If you want to keep the .dll file for running this and/or some other Visual Basic programs later, move MSVBVM50.dll to the Windows System directory, usually C:\Windows\System.

To uninstall the AIM Calculator Program, simply delete the AIM_Calc subdirectory and files.  Also delete the Windows Desktop shortcut if you created one.

Robert Lichello's "Automatic Investment Management" (AIM) ground-breaking book
How to Make $1,000,000 in the Stock Market -- Automatically!

Tom Veale's AIM Users Website

Investors Hub AIM Forums

If you would like assistance (consulting) with your Core Position Trading or AIM questions, refinements, and trading
contact me (David A. Bean)

Since the 1st Amendment to the U.S. Constitution is null and void,
except as permitted by law, the following disclaimer is provided:

This web page or others written by, hosted by, or linked to by David A. Bean are 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 before engaging in any financial transactions relying on this or any other information.