A.I.M. Users Bulletin Board

[Conrad]

Recently I have held private and public discussions, some at their request, in regards to Vortex AIM parameter optimisation , back testing and Basic AIM modifications that would result in

Residual Buy = 0

Inconsideration of all these aspects I have re-examined the Vortex AIM Program and come to the conclusion that it really is a rather simple matter to modify Vortex AIM to become fully identical in its operation to AIM BASIC and provides the extras to build in some extra Buy & Sell Aggression. . . or Buy & Sell Tempering if you might call it.

This Adapted Vortex AIM Basic Program would provide the following benefits:

1 With the Default Settings it operates 100% identical ro AIM Basic
2 By setting 5 parameters, including the Cash/Equity Ratio, the program the program can be set to operate with PC2 = V. This then removes the Residual Buy--àBuy is 0 after a trade. In this case a question has risen:
IF PC=V is used for a Buy will the Buy Advice for the next Buy @ dropping price be of the same value as in the case that the Residual Buy is carries along (as usual) and the PC is updated (as usual) . ..It seems to me NO,! The next Buy will be somewhat lower because of the lower PC. If the usual Buy is excited then the next buy will be proportionally lower by a small amount.. This is in my opinion a Bonus for the AIM operation. . .The smaller next Buy is tantamount to applying the BRAKE on the AIM Buying and reduces the Cash Burn Rate J something all AIMers seem to want to so for the case that the price keeps dropping. . .to keep the Reserve last longer.

This of course has a drawback too. If at a Point of Recovery there is still a Reserve present an AIMER wants to invest extra money on the first Buying after the recovery. It would then be handy to invest extra Cash then for the case the Recovery continues.
Suppose an investor uses a Delay Method and the at the right time wants to do all the buying he might want to invest all the money that is equal to the Sum of the Standard Buy Signals up to the Recovery Point Price. If this feature is desired then that that can easily be programmed into the Buy Function of the Vortex AIM Basic, even to the point that the Buy Advise Function uses the Regular AIM PC Up-Date and the next executed buy is the Total of all the Buy Advises. . This means that :behind the scenes the Regular PC-Update +PC1 + 0,5*Buy will be used and that simply only the Residual Buy is set to zero, but the Standard Buy Function remains as it is now. . . This way the Next Buy will be as in standard AIM. This will in fact simply means that the Cash Burn Rate is not reduced but that only the Buy = 0 is given after a Buy and the price has not changed.

A Piece of Cake

3 In the same way that in Vortex the trading aggression is built in to the Advise Algorithm so it is in the AIM Basic via the Safe values.. . .With a high Safes the trading is tempered and with small and negative Safes the trading is accelerated(aggressive). In this sense Vortex is no different that the Lichello AIM.

4 Wit a Vortex Aim Basic you can do Parameter Optimisation using the Yahoo downloaded Stock Prices in the Vortex Data Base. We already have the Vortex AIM Optimiser functioning. . . (not yet on the Order Form) . . . and with some modification we can provide an English Optimiser for the Vortex AIM Basic.

The advantage is then that you have a fully standard Lichello AIM including the Asymmetry between the buying and the selling, as is characteristic for AIM.

5 Including in Vortex is a comprehensive Financial Administration System Inclusing
5.1 Multiple Bank Account for each Portfolio;
5.2 Reporting in MS Word for Portfolio Details with all the financials for tax purposes, costs, dividends, interest earned, and yields etc. In each Report the Investor can add comments on What he has done on any day and Why;
5.3 Activity Report in MS Word. . .Al the buys are detailed and trading cost for the trade are listed;
5.4 Reports are automatically saved in your computer outside of the Program itself. The Program makes a new Report each time without retaining the previous Reports.
5.5 There is an extensive Help Program;
5.6 The prices down-loaded from Yahoo. . .currently US Stocks in US $ and European Stocks in €. . . .Prices that are down-loaded include prices of all stocks you want to look at without investing in it. . .You van look at the charts without setting up an AIM Portfolio for it. The charts are of 3 types: Prices of eqtiies/Value of Funds/Value of Portfolios;
5.7 All the financials can be expressed in US $ or in €. . . and changed from one to the other at the flick of a Button;
5.8 The Main Screen shows the individual Equity details AND the entire Portfolio with N equities in them. . .the number of equities N and the number of portfolio M that can be accommodated depend on the computer memory size;
5.9 In a Portfolio you can mix Equities listed in UD$ and in €. .there is conversion subroutine that automatically converts the prices to the appropriate currency of the portfolio;
5.10 The Vortex Program is Bi-lingual for English and Dutch.


Any AIM investors that would be interested in a Windows Vortex AIM Basic like described above please let me know on the Vortex Aiming Board . . I do not want to clutter the AIM User Bulletin Board for this.

Questions are welcome.

Regards,