VORTEX AIMing

[Conrad]

A little bit of News on the Vortex Front.

With the help of a Canadian Forex trader and information from the www.oanda.com website I have substantially overhauled my Forex excel software. I have now modified the spreads to be in line with the actual Forex Trading practice that goes on. I have essentially two versions each with a profit lock-in and an AIM-type variant:

1 TurboVest Version. This version allows essentially equity credit trading when equity prices drop.

The Lock-In version. Allows equity credit trading using priorly build-up Portfolio Value. As prices rise the profits are locked in at a specified pip-level.
No selling occurs on the way up. This is the Let The Profit Run strategy. Very effective for a long rising trend. Each time the next pip-level is reached the portfolio value is locked in like a Click Fund does. It creates super high profits relative to the underlying equity.

The AIM-Type version. Selling and buying as is typical for AIMing. This strategy, along with the equity credit buying is extremely effective for down trends and trading range investing. With the investing with equity credit one essentially sets up a leverage just like is already normally used with Forex trading. With this technique one can safely sustain price drops in the 50% range and more up to the point equity credit is exhausted.

2 The Zero Limited Reserve Model: The Reserve is blocked against becoming negative . This is for investing without using any equity credit. In the extreme this version would protect the investor against going into debt.

Just as for the TurboVest version there is the Let The Profit Run version and the AIM-type version. For ordering these Excel programs see:

http://www.vortexcw.nl/vortex/index.html ------> Order Form

As AIMers already know, the frequent buying in the dips for safe equities is a very powerful way to maintain or even increase the base value of their portfolio during the down trend. The TurboVest method is an extreme form of the standard AIM technique. . . the essential thing in AIMing is to preserve the base investment value during low prices period. Turbovest goes a step further by letting the base value of the investment increase as the price of the equity drops. This is especially attractive for trading currencies, as they do not easily drop to zero value an never do if you stick with the main currencies.

Today an Forex associate send me an interesting article on an investing method like TurboVest. It is called the Martingale Method. I say interesting as this method happens to be essentially the same as my Vortex Method. It appears that things that are essentially “self evident” periodically are rediscovered by people that simply are faced with the essence of investing when investing is stripped from the “tinsel” that surrounds it so often. The article in this link explains the Martingale Method essentially in the same way that I explained the power of the Vortex Method aggressive AIM-investing in my book The Vortex Method. See for yourself here what it amount to:

http://investopedia.com/articles/forex/06/martingale.asp?partner=fxweekly9

This article presents the essential mechanism of Vortex AIMing better than I have ever done it. You will probably end up saying, like have dome so many times:

“OK, OK, but is this not something that any 10-year old kid already knows? Buying Low & Selling High? . .is it then not obvious that if you buy twice as much at low prices that you make twice as much profit as the price is high again?”