VORTEX AIMing

[karw]

Conrad,


procedure 1: within boundaries of for example 0 and 1000 create a list of random numbers of the format xxx.xx. Each x shall be an integer 0..9. Imagine the list to have an infinite length. Then the relative occurrence of each integer 0..9 for a particular x is the same. Notice that the sequence of the list is not important, so we can sample numbers at random from this infinite list. There is a problem here with sampling. So maybe we better take the approach along the lines of calculus.

procedure 2: create a list with finite length. make sure that the relative occurence of each integer 0..9 on the x's from xxx.xx is the same(the numbers are of course different and preferably created by a pseudo randomizer). as the length of the list increases it becomes very close to the infinite list. there is a 'randomness distance' between the infinite list and the finite list which we can make as short as possible by extending the finite list. be satisfied with a finite list which approximates the infinite list dependent on the requirements of the application or within a certain distance from randomness.

so much for creating the random numbers.

procedure 3: assume you have the random numbers on a one dimensional price line. assume you have the boundaries identified, for example 0 and 999.99. If you have a lot of random numbers they nicely fill up the line segment between 0 and 999.99. In fact you can say that the amount of random numbers below (0+999.99)/2 will be the same as the amount of random numbers above (0+999.99)/2. this of course suggest the following Vortex program. Any time you encounter one below you buy, anytime you encounter one above you sell.

Only when the range is between 0 and infinite this procedure will not apply. In a practical situation one can estimate the supremum, but of course a practical situation is not random.

procedure 4: when one traverses time one can define a midpoint based on history. Some people call it portfolio control. Portfolio control will seek its level based on the random numbers encountered. One buys below PC and sells above PC. Whenever one encounters higher numbers PC will increase, whenever one encounters lower numbers PC will decrease. This is actually more alike Xdev then AIM. Also you cannot encounter a series of numbers which will go up indefinitely, but they could go high! Buying can be done with more confidence because we have the zero ground level. The situation is cut at zero and unbounded upwards.

That is it for now, see ye later, K