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Re: Toofuzzy post# 37724

Sunday, 05/18/2014 12:37:22 PM

Sunday, May 18, 2014 12:37:22 PM

Post# of 47132
I remember that Ocroft Method quite well and I saw the virtue of it: “Do not take too much Risk and be not to be too Greedy + do some wise Stock Picking"

It essentially amounted to an AIM Strategy without executing the Buy Advices but to keep track of the total Advised Buying Trades. . .If the Equity became a Deep Diver Ocroft would NOT have lost too much Money. . only the initial Inlay.

At a deep Point at which a Recovery occurred at about 10% or so, Ocroft invested the Accumulated Buy Advice, or the full Reserve.

When the Recovery continued all the equity was sold at a profit of 20 to 25 %. The trigger point was 20% as I remember it, and then sometimes the lot was sold at a higher point.

He did enough research on the equities to give him a good assurance that the equity would not be a Deep Diver and his experience was that he made very satisfactory above average yields, which was enough for him, not wanting to wait for a Killer Point. . .which would seldom happen.

The Ocroft Filter resembles the MACRO Filter except that the MACRO would not trigger any selling at 20% Profit but at an Upper End Reversal of say 10% and then Sell the AIM recommended number of shares.

Ocroft found that waiting for an Upper End Reversal would have too high a risk of a fast price decline so that Upper End Sell Order would not be executed until the price had reached a Deep Dive.

This Ocroft Filter can easily be modeled into the Vortex Threshold & Aggression Parameters. That is why I remember The Ocroft Filter.



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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