Hi Heartland99
I searched the attic and found all sorts of documents but not the Money Spinner . . .I saved almost everything that I wrote and have drawn. . . When I die it will be a disaster to sort it out. I found several items on my Investing activities and writings in 3 different places. . .The organization of all that has not been optimised.
Then I moved to the bedroom in which boxes are put temporarily for when I had a party. . .finally I found it . . . One box I have not looked in yet. . .I wonder what is in it.
OK. .I am opening the Money Spinner right now. . .my hands are trembling. . .It feels like I am opening a long lost secret document and I almost expect to find a page with a Chart with an X marked on it where the treasure is buried.
This Book is published by:
International Self-Council Press.
Copyright by Standard Research Systems Inc.
2249 Young Street Suite 303,
Toronto, Ontario M4S 2B1, Canada.
It cost me C$ 14,95 in 1980. . .
The Manual is 7 mm thick. There are 126 pages but some pages are blanc Exercise pages.
I will sell it to you for. . .ehhh. . . let's say € 300. That looks fair to me
OK. . .I am just joking!
This is going to be difficult: There is no well defined Algorithm, just worked out examples. I will illustrate without copying all the concise verbiage. . .or maybe you better buy my book? Then I will watch the Telly instead. . .
Still kidding!
Setting the Program
1-Start Capital= 10000
2-Reserve = 5000
3-Share Price = 5
4-Flow Limit = 5000. . .Obviously this is apparently the Start Equity.
5-Flow Limit = 5000 [color = red. . .It is actually used as the PC in AIM as was discovered in the analysis of the method below[/color]
7-N1 = 1000
8-V1 = 5000
9a-Next Buy Price
This going to take some time. . .Would you maybe like to buy Vortex now? That is faster. . . OK, I am not serious! I don't want to be pushy! Where was I? Aha. . .
i N1= 1000
ii Add 10% = 100
Sub Total = 1100
iii Add 100 = 1200----> B= 1200
Buying Price=Flow Limit/B . . . Aha. . A Formula!
-----> =5000/1200 = 4.16
My Excel says this is 4.166666.... So it should be 4,17
9bNext Sell Price
i N1= 1000
ii Subtract 10% = -100
Sub Total = 900
iii Subtract 100 = 800----> S= 800
Sell Price = Flow Limit/S
-----> 5000/800 = 6.25
10-Call Broker
GTC:
Buy 100 Shares @ 4.17
Sell 100 Shares @ 6.25
Here is a detail that I had also not remembered:
Min Buy Interval Ref. Start price 5: MBI = 5- 4.17 = 0.83
In all following buys the price should at least drop 0.83
Remark: In the example prices were rounded to Inch-fractional units:
Buy Price = 4-1/8. . . Sell price = 6-1/4.
By this truncation method the MBI in the example became 0.875 instead of 0,83. I will ignore such difference. . .The general method is what you want.
Min Sell interval = MSI = 6.26 - 5 = 1.25
11-Order is executed
Aha. . I now note that Flow Limit = Portfolio Control = PC. So PC1 = 5000. I now will use the AIM notation for as far as this is identical to the Money Spinner usage
If a buy: Buy = 100*4.17 = 417
PC2=PC1 + 1/2 Buy = 5000 + 4.17/2 = ----> PC2 = 5208.50
N2= 1000 + 100 = 1100
V2= 5000 + 417 = 6417
If a Sell: Sell = 100*6.25 = 625
Do not change the PC:
PC= 5000
N2 = 1000 - 100 = 900
V2 = 5000 - 626 = 4374
12 Calculating new Buy Price
Repeat Step 9a i to iii
This Buy2 price = B2 must be at least equal to 4.17 - MBI
----> B2 = 6.17- 0.83 = 3.34
If B2 > 3.34 then the B2 is too high.
Use B22 = 3.34
PC2/B22 = 5208.50/3,34 = 1959.43 . . . .use 1600
Shares N2 +10% = 1100 + 110 = 1210
Shares to be bought = 1590 - 1210 = 390
Buying GTC Order = 390*3.34 = 1302,2-----> 1302
13 Calculating New sell Price (if Sell at price 6.25 was executed)
Repeat Step 9b i to iii
This Sell2 price = S2 must be at least equal to 6.25 + MSI
----> B2 = 6.17+ 1.25 = 7.42
If S2 < 7.42 then S2 is too low. Do not use S2
Use S22= 7.42
PC2/S22 = 5000/7.42 = 673,85 . . . .use 674
Shares N2 -10% = 900 - 90 = 810
Shares to be sold = 810 - 674 = 136
Sell GTC Order = 136*7.42 = 1009.12-----> 1009
From here on the process is iterative and you repeat the same steps as you do in AIM.
The rest of the Money Spinner is like it was for Lichello's Book and my Book The Vortex Method. . al sorts of advice on What to do IF. . . . on Volatility and many more things.
Something I had completely forgotten is this. . I just read it:
On Page 57 Chakrapani discusses a method that he says would increase yield by up to 300%. This is what he said:
"Suppose your income is relatively high and in an emergency you can get cash(or use a credit Card or take out a Loan, etc.). . . .This procedure will increase the power of your investment FOUR TIMES".
This is his method:
Invest only 2500
-Set Up the Money Spinner @ 10000 and use the 50/50 CER Principle as before. You pretend that you have put 5000 in a Savings Account as Reserve. In the course of time you ought to be able to raise that 5000 you may need in the future to buy the recommended equity.
- Then buy 5000 worth of stock on margin for 2500 and you operate your Money Spinner as if you had 10000 made available at the start!
Of course, what Chakrapani states here is true. We all know it. If the prices stay nicely within the range that the investor only needs to draw on the extra money that needs to be raise later does not exceed 5000 he is OK, and as the prices start rising he will have a 4-fold leverage on his Money Spinner. . .on his selling as advised. . .this is no secret. If prices dive however he need to shove more money to the Margin Broker and that will carry extra costs that he should be prepared to carry. The assumption here is that he can
Buying stocks on margin remains a risky activity but if one does not spend more money than the intended 10000 total he was prepared to spend anyway then the only extra burden is the high brokerage cost for buying on margin. It would be quite different if one buys on Margin when prices are rising. . .if the prices drop suddenly one could end up with all the invested money being lost and ending up with zero shares.
On your questions on Vortex I will answer you tomorrow. . .I have been working on this for about 4 hours J
Zzzzz
I searched the attic and found all sorts of documents but not the Money Spinner . . .I saved almost everything that I wrote and have drawn. . . When I die it will be a disaster to sort it out. I found several items on my Investing activities and writings in 3 different places. . .The organization of all that has not been optimised.
Then I moved to the bedroom in which boxes are put temporarily for when I had a party. . .finally I found it . . . One box I have not looked in yet. . .I wonder what is in it.
OK. .I am opening the Money Spinner right now. . .my hands are trembling. . .It feels like I am opening a long lost secret document and I almost expect to find a page with a Chart with an X marked on it where the treasure is buried.
This Book is published by:
International Self-Council Press.
Copyright by Standard Research Systems Inc.
2249 Young Street Suite 303,
Toronto, Ontario M4S 2B1, Canada.
It cost me C$ 14,95 in 1980. . .
The Manual is 7 mm thick. There are 126 pages but some pages are blanc Exercise pages.
I will sell it to you for. . .ehhh. . . let's say € 300. That looks fair to me
OK. . .I am just joking!
This is going to be difficult: There is no well defined Algorithm, just worked out examples. I will illustrate without copying all the concise verbiage. . .or maybe you better buy my book? Then I will watch the Telly instead. . .
Still kidding!
Setting the Program
1-Start Capital= 10000
2-Reserve = 5000
3-Share Price = 5
4-Flow Limit = 5000. . .Obviously this is apparently the Start Equity.
5-Flow Limit = 5000 [color = red. . .It is actually used as the PC in AIM as was discovered in the analysis of the method below[/color]
7-N1 = 1000
8-V1 = 5000
9a-Next Buy Price
This going to take some time. . .Would you maybe like to buy Vortex now? That is faster
. . . OK, I am not serious! I don't want to be pushy! Where was I? Aha. . . i N1= 1000
ii Add 10% = 100
Sub Total = 1100
iii Add 100 = 1200----> B= 1200
Buying Price=Flow Limit/B . . . Aha. . A Formula!
-----> =5000/1200 = 4.16
My Excel says this is 4.166666.... So it should be 4,17
9bNext Sell Price
i N1= 1000
ii Subtract 10% = -100
Sub Total = 900
iii Subtract 100 = 800----> S= 800
Sell Price = Flow Limit/S
-----> 5000/800 = 6.25
10-Call Broker
GTC:
Buy 100 Shares @ 4.17
Sell 100 Shares @ 6.25
Here is a detail that I had also not remembered:
Min Buy Interval Ref. Start price 5: MBI = 5- 4.17 = 0.83
In all following buys the price should at least drop 0.83
Remark: In the example prices were rounded to Inch-fractional units:
Buy Price = 4-1/8. . . Sell price = 6-1/4.
By this truncation method the MBI in the example became 0.875 instead of 0,83. I will ignore such difference. . .The general method is what you want.
Min Sell interval = MSI = 6.26 - 5 = 1.25
11-Order is executed
Aha. . I now note that Flow Limit = Portfolio Control = PC. So PC1 = 5000. I now will use the AIM notation for as far as this is identical to the Money Spinner usage
If a buy: Buy = 100*4.17 = 417
PC2=PC1 + 1/2 Buy = 5000 + 4.17/2 = ----> PC2 = 5208.50
N2= 1000 + 100 = 1100
V2= 5000 + 417 = 6417
If a Sell: Sell = 100*6.25 = 625
Do not change the PC:
PC= 5000
N2 = 1000 - 100 = 900
V2 = 5000 - 626 = 4374
12 Calculating new Buy Price
Repeat Step 9a i to iii
This Buy2 price = B2 must be at least equal to 4.17 - MBI
----> B2 = 6.17- 0.83 = 3.34
If B2 > 3.34 then the B2 is too high.
Use B22 = 3.34
PC2/B22 = 5208.50/3,34 = 1959.43 . . . .use 1600
Shares N2 +10% = 1100 + 110 = 1210
Shares to be bought = 1590 - 1210 = 390
Buying GTC Order = 390*3.34 = 1302,2-----> 1302
13 Calculating New sell Price (if Sell at price 6.25 was executed)
Repeat Step 9b i to iii
This Sell2 price = S2 must be at least equal to 6.25 + MSI
----> B2 = 6.17+ 1.25 = 7.42
If S2 < 7.42 then S2 is too low. Do not use S2
Use S22= 7.42
PC2/S22 = 5000/7.42 = 673,85 . . . .use 674
Shares N2 -10% = 900 - 90 = 810
Shares to be sold = 810 - 674 = 136
Sell GTC Order = 136*7.42 = 1009.12-----> 1009
From here on the process is iterative and you repeat the same steps as you do in AIM.
The rest of the Money Spinner is like it was for Lichello's Book and my Book The Vortex Method. . al sorts of advice on What to do IF. . . . on Volatility and many more things.
Something I had completely forgotten is this. . I just read it:
On Page 57 Chakrapani discusses a method that he says would increase yield by up to 300%. This is what he said:
"Suppose your income is relatively high and in an emergency you can get cash(or use a credit Card or take out a Loan, etc.). . . .This procedure will increase the power of your investment FOUR TIMES".
This is his method:
Invest only 2500
-Set Up the Money Spinner @ 10000 and use the 50/50 CER Principle as before. You pretend that you have put 5000 in a Savings Account as Reserve. In the course of time you ought to be able to raise that 5000 you may need in the future to buy the recommended equity.
- Then buy 5000 worth of stock on margin for 2500 and you operate your Money Spinner as if you had 10000 made available at the start!
Of course, what Chakrapani states here is true. We all know it. If the prices stay nicely within the range that the investor only needs to draw on the extra money that needs to be raise later does not exceed 5000 he is OK, and as the prices start rising he will have a 4-fold leverage on his Money Spinner. . .on his selling as advised. . .this is no secret. If prices dive however he need to shove more money to the Margin Broker and that will carry extra costs that he should be prepared to carry. The assumption here is that he can
Buying stocks on margin remains a risky activity but if one does not spend more money than the intended 10000 total he was prepared to spend anyway then the only extra burden is the high brokerage cost for buying on margin. It would be quite different if one buys on Margin when prices are rising. . .if the prices drop suddenly one could end up with all the invested money being lost and ending up with zero shares.
On your questions on Vortex I will answer you tomorrow. . .I have been working on this for about 4 hours J
Zzzzz
Conrad Winkelman
What is Vortex AIMing? Look for my Vortex Discussion Forum:
http://investorshub.advfn.com/boards/board.asp?board_id=1341
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