VORTEX AIMing

[Conrad]

Thanks Clive!

By way of your Instructions For Dummies I have given birth to a baby!



This effort is just for the purpose of showing off that I am not a complete moron after all

Fantastic, now I can delight all of you with new brain storms that you can actually see! That will save 1000 words/picture and all you will be glad I will say so little to say in the future

When I got to this Image Gallery I noticed that I had already loaded up various picture before and I remembered having done but how I done it had escaped the grey mush in my head! My Neurons are disconnecting themselves!

Now that I have done this I might as well give a useful commentary on the use of these charts. It is (obviously)the basis of my X<--+-->1/X Portfolio I have set op on October 29.

My AIM is to create a ladder for each equity so that approximately a Sell for the X-Equity is as large as a Buy for
the 1/X-Equity. I would experimentally set the ladders to achieve this. The motivation for this is that this way one can start with a relatively small Reserve and swing the trades back and forth so that the Reserve remains approximately constant and could be used if the price drops through the bottom of the trading range. This gives a Cash Buffer.

Naturally one could say that it would generate more profit if 100% of the capital is invested. Maybe that is indeed better. . .if it appears to be better than I can simply invest that Reserve any time I want to. Thanks Clive!

By way of your Instructions For Dummies I have given birth to a baby!



This effort is just for the purpose of showing off that I am not a moron after all

Fantastic, now I can delight all of you with new brain storms that you can actually see! That will save 1000 words/picture and all you will be glad I will say so little to say in the future

When I got to this Image Gallery I noticed that I had already loaded up various picture before and I remembered having done it, but how I done it had escaped the grey mush in my head! My Neurons are disconnecting themselves!

Now that I have done this I might as well give a bit commentary on the use of these charts. It is (obviously)the basis of my X<--+-->1/X Portfolio I have set op on October 29.

My AIM is to create a ladder for each equity so that approximately a Sell for the X-Equity is as large as a Buy for
the 1/X-Equity. I would experimentally set the ladders to achieve this. The motivation for this is that this way one can start with a relatively small Reserve and swing the trades back and forth so that the Reserve remains approximately constant and could be used if the price drops through the bottom of the trading range. This gives a Cash Buffer.

Naturally one could say that it would generate more profit if 100% of the capital is invested. Maybe that is indeed better. . .if it appears to be better than I can simply invest that Reserve any time I want to.

As I mentioned before, my AIMing system already produces a progressive ladder automatically. For a trade aggression

Fbuy = Fsell

My AIM Trades are produced as function of (PC-V).
As I am selling towards the top of the Trading Range the equity Value will become progressively smaller, so for a given a step-change in the price the Difference (PC-V) grows less rapidly than for the buying steps even though the value would rise more rapidly without the selling.

For a the buy-side the Value increases with every buy more rapidly (if the Fbuy factor) is large enough so the same step-change in the dropping price. This happens when a buy creates this effect in the Value Chart for certain by aggression:



This would create from the top down the selling and the Vortex Trade Ladder(arbitrary symmetric values in this example):

8000 = Equity Sold 15000 and 8000 left as Equity(3000 gain)
4000
2000
1000
0------> Mid Point Reserve = 20000....Value = 20000
1000
3000
6000
10000 = Equity Buying total 20000....Reserve = 0

So, for the same Sell aggression as the Buy aggression the Sells are weakened because of the equity value reduces. This is a consequence of the feature of my Proportional Trade Function

Trade = M*(PC-V)

Having realised this recently more so than I did in the past the of introducing additional Trade Ladders to deviate from the normal Vortex AIM behaviour may not be necessary in most cases as I can control the Trade Ladder with the trade Aggression Factors, who's names already imply exactly what had in mind with the ladder structures. Only in cases in which I want to introduce stronger buying and selling delays than I would expect to get normally a special trade ladder might be useful.