Information on upcoming updates on Vortex AIM
Cash Limiter Vortex Version
Recently I discovered with a Test Portfolio that in some cases the Negative Reserve Preventor (NRP) does not always prevent buying shares when the Reserve for a fund is too small to execute the Advised Buy. This brings the fund unintentionally into a position of having used “borrowed money. Although in practice such a trade would not be executed it is the specific purpose of the Standard Vortex Program to prevent making trades with “borrowed money”.
The cause of this error is as follows:
In any Portfolio one can enter as may different type of equities as desired. For this up to 5 bank accounts can be used per Portfolio for keeping the Reserve and for Fund Cost Accounting so that Equities Management can be grouped in desired categories. . .For example Precious Metals and another types like Oils, etc. in a Natural Resources Portfolio. This way one can have 5 different type of natural resources grouped in one Portfolio. Each Fund is singularly fully represented as a separate investment, in regards to all relevant investment aspects such as among others, Yield, and these are summed-up to form the Portfolio Total Representation, as if the Portfolio is a single investment.
This worked fine except that till now the testing for sufficient cash to buy(or not to buy) has been done on the Reserve Total per account, rather than on each fund. This has allowed the possibility that some funds can go to a negative Reserve if the Account Balance is large enough not to go negative. This is not as intended. It would work fine only if a Portfolio has two funds that have negative correlation. . .one fund sells while the other buys.
Vortex Aim will be modified so that the NRP Test will be carried out on the Reserve per Equity. This would prevent the allocated Reserve for a fund to become negative: The Buy will be blocked until enough money is available for buying.
AI
