VORTEX AIMing

[Conrad]

Recently various discussions have been held in the AIM User Forum on calculating Hold Zones and SAFES for the AIM Method using Equity Price information.

Since Vortex AIM is in some respects quite different from Standard AIM these specific AIM settings have no real meaning for Vortex AIM.

Nevertheless I have been working on developing an algorithmic system which would calculate the Hold Zones and the Trade Aggression Factors based on Historical Equity Price Data.

At the moment Vortex has set up a manual method that is rather time-consuming but will be able to [b[optimise all the variable parameters on the Vortex program

1 The Cash Equity Ratio with which the Portfolio should be started;

2 The Buy & Sell Hold Zones. This is the Price Spread between which no trading should be done;

3 The Buy & Sell Trade Aggression Factors;

4 The Cash Burn Factor for cases that the Buy Advice is larger than the Reserve. This variable will stretch the buying into lower prices more effectively to increase yield.(*)

In all this it must be recognised that this optimisation will realise a maximised Yield for as long the historical price behaviour will approximately be repeated. The absolute parameter settings from the optimisation procedure will be “tempered” so that the settings will respond best to the approximate price behaviours of the Historical Data Set. The absolute yield figure for the portfolio will therefore be somewhat lower that was calculated in the optimisation. . .This a necessary procedure because future price behaviour will never be identical to past price behaviour.

When prices start to move significantly outside the boundaries of the Historical Data Set a new optimisation procedure must be executed with an updated data set.

Vortex AIM users will be able to purchase an Optimisation Kit for doing this optimisation themselves or they can sign up for a Optimisation Service Package.

Prices

Optimisation Kit:
1 A Vortex Excel Program prepared for the Equity that the Vortex Investor is using;
2 An Instruction Brochure for doing the optimisation.

The purchaser should have preferably identified the period for the Historical Data Set for which there is a definite Trading Range identifiable. . .if the historical data is very chaotic they the optimisation is less likely to be accurate. You can of course still buy the Optimisation Kit and get used to the procedure and use it for another equity. The Data Set can be arbitrarily changed for a different equity that shows good Trading Range behaviour.

The purchaser should provide en Excel list of the Historical Data Set.

Price = € 100 based on a 2-hour work load to prepare the Kit with the Equity prices provided by the Purchaser on an Excel File.

Should the Purchaser prefer that I get the prices myself for the chosen Equity then they must send me the exact Ticker Symbol, I will then select the proper period for the historical data Set and set the parameters intuitively for a good starting point for an optimisation (**). This extra work requires minimally 1 extra hour. To provide a margin for time overrun I charge 1,5 hour extra.
Price = € 175

Optimisation Service

The Optimisation will run over a 6-variable set of values that can cover a wide range of values. Sometime one can “hit” upon an optimises set of parameters rather quickly but in other case with larger data sets times if can take 6 hours or so. To be fair I will state that large data set that cover a long period are not to be used. I set m s fixed price.

a) Purchaser provides the Data Set no larger than weekly prices for a 6-month period.
Optimisation Price = € 200 for 1 hour Set-up and 3 hours of optimisation work. If the optimisation happens to go quickly you will receive a credit for the next Service;

b) Purchaser does not provide the Data Set but only the Ticker Symbol of the equity. I will then select the data set. Dat is ¾ hour extra:
Optimisation Price = € 275 for Service as in (a)


Prices are Net ex. Sales Tax
You must add money transfer fees to the Price.
For purchase from outside of The Netherlands no Sales Tax applies.
For purchase from the Netherlands 21 % Sales Tax must be added on the total amount. When money transfer fees are applied within The Netherlands they are subject to Sales Tax levies.(***)

Satisfaction on services guaranteed. If you have trouble with understanding what is to be done after the optimisation I help you out.

Note
My guarantee does not apply to achieving a certain yield result on you Portfolio. There are too many things that can happen over which I have no control. At best I can do is that after the optimisation I will run the a Mirror Portfolio if you send me a copy of your Vortex Portfolio File (Either Excel or Windows) and I will check out what happened and let you know what to do different if any. It could be that the prices have changed in such a way that the optimised Parameter set is no longer valid.

For ordering you can go to:
http://www.vortexcw.nl/vortex/index.html -------> Order Form

and describe the Product you want in the Information Box. These Optimisation products are not yet on The Product List.

(*) The Cash Burn Limit Factor is only present in my Vortex Excel Program. In Vortex Windows Program this works slightly diffrently and is a manual adaption if the Trade Asdvice is too large.

(**) In any optimisation procedure it is important to select a “good” starting point that will lead to the Absolute Maximum Result. Normally multiple Optimised Sets can be found and with starting with an examination of the process in the set one can select the best parameter settings to find the Optimised Parameter Set.

(***) The 21% Sales Tax applies from 1 October 2012