VORTEX AIMing

[Conrad]

Response to a potential Vortex Customer:

Dear Sir,

Good to hear you are interested in the Vortex Dynamic Investment Program.
Allow me to introduce myself: I am the original developer of Vortex Program in Excel and Chris Kruidenier has skilfully converted it to a modern Windows program. The basis for the Methodology of the investment technique is described in my book The Vortex Method.
Let me explain the significant changes that have been introduced
over time.
1 A Real Time Dollar and Real Time Euro exchange rate. . .updated every minute. You can switch that on or off as desired;

2 Return on Investment. . .ROI was previously defined in Vortex as a Time Averaged Investment calculation called ROTAI(1). This considered strictly only the investment of the "Capital at Risk", and not the Reserve that was kept on the books. As some people define as their investment also as the Reserve. . .this results in the Simple ROI. . and does not consider the dynamic nature of the investing, so I concluded that:

A ) The simple ROI is not a good indicator of the Yield of an dynamic investment in which the invested amount of money changes over time. I have therefore introduced a Yield Function that considered a time averaged inlay capital so that the yield percentage is calculated 100% accurately in the average amount of money invested.

This is called the ROTAC Yield: Return On Time Averaged Capital. One can spread the capital injections and withdrawals over time and the ROTAC Yield is always calculated over that variable amount of money that remains invested. If you take cash out of the Portfolio this reduces the invested capital and this increases the yield over time;

B) The ROTAI Yield formula: Return on Time Averaged Investment. . . is modified recently to be more accurate than it previously was. It now only uses the money that is used for buying equity.

The Reserve that is kept available for the Portfolio is not at risk in the equity that is bought. . . This Reserve is simply allocated for buying equity in the future, IF that becomes desirable. The interest that is earned on the Reserve is added to the Reserve and this increases the yield of the Portfolio only on account of the profit on the capital. This is a fair method because normally one gets a "savings account" yield on the money in the bank. . these interest earnings are now considered in the Portfolio Profit because the Reserve is. . .in a sense. . . dedicated to the Portfolio, but not as an investment in equity purchases. Dividend however is a special case as it is sometimes issued as shares and sometimes as cash. It is however a yield on the equity in either case and is entered into the Portfolio Input manually, according to the manner in which it is received.

There you have it. In Vortex one can simply switch from looking at ROTAC Yield to ROTAI Yield at a click on a button and that provides a very accurate representation of the fundamental difference between the two yield concepts.

At the moment the variable settings for proper investing are to be determined by the investor, although there is a conservative Default Mode that gives out rather small trade recommendations. I am working on a method to set the Hold Zones and the Trade Aggression Factors to optimised values on the basis of Price behaviour of the Equity. . .for example using the Trading Limits of the equity in the recent past. These method can now be communicated to you in general via the I-Hub Forum or in private via e-mail. Automation of this may be done in the future. For the private instruction in which I will do the calculation a fee-structure is set up as it involves considerable time to do. This fee-structure has been defined on this Forum already in Post # 571 on September 25 2012

I hope this information is useful to you.

Should you have any questions on the Vortex methodologies you can put the question on my I-Hub Forum:

http://investorshub.advfn.com/boards/board.aspx?board_id=1341

Regards,

(1) This is generally defined as the Internal Rate of Return(IRR). I have used a rather informal mathematical symbolism but that in not visible to Vortex Users. I have developed the formula myself from fundamentals and which factors to include or not is bases on my personal judgement.