A.I.M. Users Bulletin Board

[Conrad]

Tom's Graph for AIM BTB-AIM Testing Reference.

Hello Tom,

Your Graph of the AIM BTB looks good. I will await your comments on my question in regards to nudging the BTB AIM towards zero cash as discussed. Your Graph looks quite similar in shape, generally, to the Vortex Aim Graph, as was generally expected.

In case you will adjust to zero cash than it will be interesting to see is the Portfolio Ratio's will change any.

I have added the cash 5% interest earnings to my algorithm.
As a first analysis of the two AIMS I list the [Vortex]/[AIM BTB] Ratio's:

 
 Portfolio   1,139340334     Value = $ 26 149 at Week 85 
 Cash        1,353085511 
 Stock       1,021621622 
 

Interesting in this is that the distribution for the cash and the stock is not equal. This may change of course if you adjust your cash to zero at low points. In any case the following interim observations are:

1. The Vortex AIM ends up with a higher cash reserve relative to the AIM BTB.

2 The Vortex AIM shows about half the number of transactions compared to the AIM BTB.

On Point (1) very little can be concluded, except, that if the AIM BTB as provided remains the Reference AIM.

On Point (2) it is clear that lower number of transactions for Vortex explains is in part responsible for the higher portfolio value. Reducing the transaction costs has a compounding effect, as greater cash conversion into stock will have a positive effect on the Portfolio Value.

Right now I will reserve further comments until later.

Regards,
Conrad