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Re: Bernie Goldberg post# 4021

Thursday, 07/18/2002 7:00:55 AM

Thursday, July 18, 2002 7:00:55 AM

Post# of 47147
Hi Bernie, On Minimum Trade Quantities.

(Hi Bernie sounds like an oil field in Canada)

When I was fooling around with my Models Spread Sheets I used in the first instance a Fixed Quantity for the Minimum Buy/Sell. This variable had nothing to do with the Vortex AIM functioning as the Holding Zone defined by the Trade Resistance would define the Lower Trade Limit for normal operation. The Minimum Trade Quantity defines the smallest trade one should execute from a practical point of view in order to prevent high trading cost per trade(for very small portfolios).

In the other spreadsheets I mentioned I played around with various other ways of defining parameters. The reason for this is also that in the spread sheets I had no provision for a Trade Resistance other than the Minimum Trade Quantity.

In the VORTEX Program I have simply defined a Trade Resistance and no Minimum Trade Quantity. I recommend a Minimum Stock Value of 10 000, so a 10% Holding Zone comes to a Minimum Trade of 1000. Even with a stock portfolio of 5000 this is 500. To start an AIM with less than that is useless anyway, unless you run it on a fund with trading costs of 0,5% per trade, and then you can trade down to 50 a shot!


Conrad

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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