VORTEX AIMing

[Conrad]

Hi Heartland99.

I have provided the stepwise procedures form the Money Spinner and noted that there is no Smooth Buying algorithm based on a gradual stock price difference but that fixed price differentials are used. I am not so much interested in trying to understand the Money Spinner for making a reading system for it so that it can be used for any price level. For example I do not want to test it further for all sorts of different price level. My suggestion was, based on the similarity that was suggested for different prices and that was the Minimum Trade Interval (MTI) Calculations and I suggested the Formulas:

(1+0,1)*N1 + N1/10 = X= Share Update to calculate Next Buy Price
(1-0,1)*N1 - N1/10 = Y= Share Update to calculate Next Sell Price

This would be like the 1,2*N1 and the 0,8*N1 as you suggested but how does this work out for Penny Stocks at a price of 5 cents? I was not about to do any more testing on this

My suggestion was to use this for every Staring price for the Purchased Equity=PC. . .but does thus give reasonable MTI for Penny Stocks or if the price = 500?

Then the question I still have is: Why is it for the Money Spinner that the first buy after the first price drop is set at 100 Shares??? Why not 125 pr 80 ????. This would appear quite arbitrary but there may be a reason.

Suppose you start with PC1= 2000 instead and with 4000 Total Investment instead(or even 9000 Total . . .(Who cares how much Reserve you use for the start anyway? It does not matter anyway!! )

Would then the number of shares after a price drop be 40 shares in proportion. . . and why if you say Yes????

Example with Share price =5

2000/5= 40 Star-up Quantity= N1
PC=2000
X=1.1*40+40/10 = 48
Next Buy Ptice = 2000/48= 4.17

Obviously just as before because the formula is proportional. . .But what now???

Buy 40*1.17 = 167 Shares. . .Thus is a ridiculously low amount to buy and one would not do it for normal shares, but it would be OK in one buys Mutual Fund Participation @ 1% trading costs. So you hav to Introduce here to the Min Buy Amount. . .like you do in AIM anyhow.

What I can foresee that that if more people would want to start using the Money Spinner as an serious alternative to AIM they would have to considerer all the aspects in regard to the advantages and the disafvantages and the modifications that one would think is necessary in a particular case.

One would get in a 10-year long Discussion like happened on AIM. I do not want to get involved in that. At ever point one can ask: "Why not use 13% instead or 10% or 8% or one might as well do this:

X=(1+a)*(N1)+ N1/b and Buy1 = N1/c
Y=(1-d)*(N1)- N1/e and Buy1 = N1/f

And these variables would come also back in the following after each Trade. Sure you could automate all that

Then using a Variable CER and one ends up with 7 variables that one could play with and adjust in the same way I do in Vortex with 5 variables(6 variables if I count the Cash Limiting Factor).

I would rather not get involved in that. Perhaps you could address your suggestions on the AIM User Forum. . .I have given the links to our Money Spinner Discussions on that Forum. . . .Up to now no one has even responded in the contents. . . .possibly no one is interested.

It is perfectly OK to post your result on this Vortex Forum if the AIM Forum people are not interested in it at all, as Tribute to the Money Spinner But I do not want to get onto the details in the sense I want to use it.

In that sense you do not need to report on everything you are doing on this but you do so and in case people are interested to discuss it that is just fine. . .maybe then I will sell more Vortex programs

Dit nog:

However, I do not agree with the idea of buying "on the way up" (for example buying 10 more shares when the price returns to 83.333). I think Vortex/AIM have the right idea about selling when stock value exceeds a determined Portfolio Control level.

I can not place this remarks. Are you perhaps referring to Ocroft’s Uptrend Method in which he waits for a dip and then Buys the stock at a bit higher price? That method is quite OK but requires good study on the stock. One can sell on the up-trend at a level one is happy with. . .or one could sell in steps and that is fine too.