VORTEX AIMing

[Conrad]

After analyzing the implications of First In- First Out(FIFO) and other selling strategies on

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=43345357

I have concluded that for the Vortex AIMing procedures for FOREX trading these sell strategies are irrelevant as they are simply fiscal instruments for retarding the paying of current taxes.

For the Vortex Excel programs the Sell Strategy for rising equity unit prices will remains exactly the same as for traditional AIMing of common stocks. The Advice Generator will calculate the Sell Value on the Portfolio Value Change.

The only thing that need to be done for the execution of a Sell is to match the Sell to a particular Lot on the Forex account.

Example

Lot sizes on the Forex Account in number of units acquired at progressively lower unit prices:

100000

500000

1000000

With dropping prices the AIM-Investor would typically invest stepwise equal amounts so that the number of units increase with each buy. With an aggressive Vortex Method one can also increase the value of the investment as the price drops. The only thing that is achieved that way is that the Margin Available will be reduced more rapidly.

When the unit price starts rising at some Vortex will give a Sell Advice, of say a leveraged value of € 500000 at an average unit price of 0.93, then the Lot Size will be calculated

€ 500000/(€ 0.93/unit) = 537634,4086 units.

Thus the Sell is set at 500000 units and the second lot that is bought will be sold.

The Excel program automatically calculates the number of units that is associated for the Sell Advice. One need to simply adjust the value of the Sell so that the number of units to be sold matches exactly the nearest lot size.