A.I.M. Users Bulletin Board

[Conrad]

I am extremely angry! I typed a long response with answers and suggestions and pushed a wrong button and everything disappeared
(I know how to prevent it but I got caught again with my pants down)

I will try again but this time everything I say now will be quite different.

. . it suggests that there is money to be made using a disciplined, AIM-like approach with Fx.

Indeed. Vortex can make money on any Data Set that contains value variations over some cycles. . that is no secret. To make money on a real case without knowing what the prices will do is a different issue.

Something about the data doesn't seem right, though. Have a look at the following Chart at Google finance. It indicates that 1 USD was not anywhere close to 0.9331 Euro in Dec. 2004.

http://www.google.com/finance?q=CURRENCY:USD

It might be interesting to see what happens if you run the analysis using more recent data.

You may well be correct. I received that DataSet from Narin Anderson to use on my Vortex FX Model. . . I had no idea what it represented. . I assumed it was the US$ but it could well have been the Exchange Rate Can$/US$ or the price of Pecan Nuts per pound in Zwaziland in Zwali currency. . I did not care and it makes no difference as it is a model of something that has value variations. . . .(after checking my files I noticed that Narin Anderson is Canadian).

About testing anything more recent. . .just send me a DataSet of you liking in Excel format, with between 60 and 100 DataPoints and I will do the Demo Run. To do it correct then also give me this:

· Trading costs
· Interest on positive and negative Reserve
· Leverage
· Cash Limiting Vortex Model or TurboVest Vortex Model

If you send me raw data from the Money Marker you need to as the trading cost. If the Reserve is in you own account the use interest on that. At this time a special rate for negative Reserve I still have to build-in. This feature is important if you want to invest with borrowed money. I will send you back the results for some arbitrary set of vortex parameters as used in the previous results I send.

I have a much better idea: Send me € 1000 (or a smaller amount)via PayPal and I will be the Broker for a Real Forex Case. What is needed is. . .In this case you are buying in Euro’s as I am executing it from an Euro Account.

· Agreement on the trading costs that I charge per trade;
· The leverage will not be larger that 5;
· I do not pay interest on the € 1000 and I consider the transfer cost PayPal charges as a cost for the Demo Run,
· You decide on which “pip” value you profit has to be locked in. . .a sort of ClixFund system;
· I will not allow you to run up a negative Reserve. I will send you the Cash Limiter Excel Model so you can decide when a currency will have to be traded. I will mimic everything you do. . . You are the CEO but I can advice you on the questions you have. This means if you trade in such a way that the Reserve becomes negative. you have to bail out to prevent running up to Reserve = 0. If you do not do than I will do it as I do not want you to runt into debt position;
· We will have to agree on which €/$ index we will execute the trading

It will work as follows:

· The cost of the program € 60 will be deducted from the € 1000 and thereafter you can use it for any other forex activity. You can even copy the program and run other forex activities at the same time;

· The trading will start at any time you give me a “Buy” or “Sell” Order;

· Say you start with a Buy of € 100 to buy a Dollar or any other currency. If L=5 then you and I simply enter that in the Excel Model and the cost per trade is displayed and the Reserve becomes R2=1000-60 –PayPal Cost –Trad1 cost. The 500 units of currency is the value of the leveraged Buy. That is al. My Vortex Euro Account with the € 5000 + 1000 Deposit does not change. In this case I do not have to buy any foreign currency at al as we are not really trading currency but playing the Currency Index. . I could actually buy the 500 units currency buy that is more expensive as I have to do more work;

· After this the rate rises or drops. If the rate rises the profit on the 500 units is added tot the Reserve. If the rate drops the loss is added to the Reserve. It is as simple as that;

· As the rate rises then at a certain pip value I will lock in the profit but you still have access to the 500 Unit (In Vortex this means actually, as yet, that a Sell is not executed). Locking in the profit means noting more than if the rate drops to the lock-in level the 500 units will be terminated on that price and you have a guaranteed profit. If the rate keeps rising then the 500 units will keep increasing in value and the profit can be locked in again. The locking in simply means that you have greater Reserve but also guaranteed levers of profit;

· If you want to buy more currency units then you give an Buy Order up to the point that you have an spend able Reserve. If you want to Sell then you issue a sell Order or you eliminate the position;

· A tally of the bail-out position will give the value of the Reserve and that amount will be returned to you with trading costs subtracted. If you have traded and the price drops back to the Lock-in level then the position will be canceled and the Profit will be waiting for you to request it. My Trading costs have been already deducted.

An obvious thing to settle on is the trading costs as a fixed amount + a percentage of the trade. In that way I will profit along with you if the price rises but also if the price drops. . . Remember. . I am the Broker. . .J

A better way of learning of how forex trading with VORTEX works does not exist.

The thing about this “trading” scheme is nothing more than a betting game and I provide the betting table as some cost. The “problem” with this proposal is that it is not a formalized system in which one can have guarantees that Broker Vortex is a recognized bona-fide Agent. . of course, I am bona-fide but no one can get this confirmed. . . for us this is just like a friendly poker game. The same type of trust in me you need when you order a Vortex Product and to gave to pay up front. The Deposit simply serves as a money pool to make sure I get my services paid for.

With a L=1 I could even set up a Dollar account at my bank. In that case I could even deliver the dollars you would have purchased, but this would be a futile exercise as it would be much more costly.

You might ask: “Suppose I make a lot of money on the exchange rate increase. . . .How can Vortex pay that profit to me if he does not actually trade the currency?
Good question. I simply have the option to open a US Dollar account at a moments notice and actually I would have a Dollar Buffer. I would not mimic all the little trades you order. In that way if the dollar rises the actual value increase is realized on that Buffer and I earn also on that. If the value drops I should make sure that my Buffer is about of the same magnitude as you have bought with the leverage rate. Then my loss on the buffer is bout the same as your's, and is deducted from your Reserve. If my Buffer is too large I simply lose on the drop in value on my own part of the Buffer.

My suggestion is an interesting means to run an FOREX Experiment. . .on how the Vortex Model works. The experiment does not need to follow exactly the rules of formal Forex Trading. I lost and won money on previous ventures before. . . .It would not be different here.