Vortex Demo Funds ASML Rebalancing.
The ASM Lithography share price has increased substantially since the start of the Vortex Demo portfolio's and I was high on (virtual)cash. Some time ago I reinvested $ 17 000 and the portfolio became high on shares. On this Demo Portfolio I have tried to run it as realistically as possible. Reinvesting the cash is however easier to do in a virtual demo than in real life, but I am basically an aggressive investor so I think I would do something similar if I actually had the capital invested. Considering various market noises I feel that it is smart to invest in ASML.
Next to realistic ASML Demo I also run an optimized ASML Demo in which the variables remain under control of the parameters retroactively. This means that if parameter settings are changed Buys and Sells in the past are also changed in the optimization process.
This optimization tool is of course not representative of a typical portfolio behavior but it helps me in trying to see what the optimum parameter setting would be. In this ASML Demo portfolio I was almost completely out of shares and this makes the trading ineffective for a bull market. At the end of October I reinvested $ 20 000 and got the CER down to approx. 10/90.
So, the two actions of rebalancing are Buys when the price is in an up-trend, and this is a 180 degree switch from the normal AIM Advice.
Simply this illustrates that depending on circumstances one can effectively override the normal AIM guidelines, every time that it is considered necessary.
In line with these comments, and appropriate for a trading system such as Vortex, I consider trading a completely flexible series of event for which the guidelines can change from day to day, if need be.
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