Karel,(& Tom) I respond to your message "as I read your message":
1 I think in pictures for the moment, and I visualise First In, Last Out=FILO. This reminds me of a warehouse with one door. How about the Veale Warehouse. How does that work, Tom
2) Ahh. This is of course the same as LIFO, as you surmised! Right, but this would normaly be via a price delay to sell high!
3) Your next point is less clear to me. I presumes for the moment the possibility that a package that is bought might be sold at a loss. Is that possible? Think, think, think: Yes! It is possible. It is also possible for me to jump from the DOM in Utrecht(No wire fences to keep me from doing it) but I am not planning it as it is not a profitable strategy. As you say, it might happen with bad parameter selection. Also, it is possible if the investor wants to do it, to cash out his portfolio.
In this last case all that is necessary is to have a very conservative buying and a very aggressive selling, in combination with a low Minimum Sell. In this case VORTEX can do it because it is designed to do it, but with such settings are not compatible with optimisation of the yield.
In case one needs to cash out the portfolio it would be advisable to use a yield optimisation strategy that maximizes the cash portion rather than simply sell of shares.
The beauty of having the flexibility is of course that it opens up the doors to various options(Maybe even Options as well!)
Conrad
AI
