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Re: socaldave post# 34388

Friday, 04/22/2011 11:11:54 AM

Friday, April 22, 2011 11:11:54 AM

Post# of 47146
Hi scaldave. . .possibly other have already replied in depth as to the wisdom of sharing cash. . I am just replying in regards the fact that I have developed a scheme for this in Vortex AIM. I do not pretend I am wise.

1) I divide the total Cash Pool to all the funds in a Portfolio and proportion the allocation to the share value of the Funds automatically. . .when one fund gets bigger it gets a larger proportion of the cash.

2 In one option I allow Negative Cash. . This is the TurboVest Option in which you can let the Negative Cash be as large as you want under the assumption that you know that that you are running higher risk if things go bad with stock prices. The idea here is that YOU let the Negative Cash be as large as you can afford to lose. . it then comes down to your judgement as to how much you can afford to lose. . .YOU are the Manager.

3 When some of the funds become relatively small the smaller allocation of the Cash (+/-) Pool will result that the Trades are sooner limited by the Minimum Trade. . .small fund may then sit there waiting “foaming at the bits” for more cash if you have the Cash Limited Option(No negative cash). With the TurboVest Option you simply execute the Recommended Trades as long as you can justify doing so. Its YOUR MONEY.

In these options I am not judging how this will work out in any particular case. . . it will require more attention to protect your x$%hw#2% if you use the Turbovest Option than if you use the Cash Limited Option but then too it is YOUR MONEY and you should have proper protection guidelines for your self as to when to bail out.

In this sense Vortex AIM is no different than Regular AIM you van always pump in as much money as you are willing to lose and you can protect yourself in the same way by only investing in stocks you are prepared to own.

Regards,


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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