Interesting that there were at the start various interpretations of what Ocroft explained he actually did. I suppose a number of people at the time were uncertain what the method was, because perhaps that was due to the fact that the verbal explanations did not include specific examples.
What I remembered more than anything is that Ocroft seriously studied the equities he was uberhaupt willing to invest in on the basis of their intrinsic value an unlikelihood that they would become Deep Divers that would stay Deep:-) . This means that the equity was "worth buying" even if the equity was in a temporary dip and that triggered his buying just like any investor would buy an equity that was worth buying. He did NOT wait for an additional Buy Signal after he decided to buy the equity (That is my memory of his later explanations :-)).
I also remember that he invested 50% of his allocated capital.
Then Ocroft would deviate from the AIM Method:
1 For dropping equity prices he would let it drop without buying any shares until there was a Price Turnaround and at a recovery of say 10 % from the Dip Price he would invest the accumulated AIM Buys that were advised at the Dip Bottom.
2 On the Up trend there would not be any selling until the Profit of the investment stood at 20% or higher and then Ocroft would be satisfied and sold all the shares. . .not waiting for the Big Kill that might never come.
3 If the price turned around right after doing the initial Buying then the 20% Profit Rule would also be used and he would sell all the shares.
This 20% was not an Annual Profit but a real profit. . . If the turnaround would happen in half a year to the Sell Point the Annual Profit would be >> 40%. . .this because part of the time only 50% of the money was invested (Ref the Veale ROCAR and the Vortex ROTAI Yield calculation).
If I am wrong in this I blame it on my fading memories :-)
I remember though doing a Dry Sun contest with Ocroft with Vortex AIM on some historical data. The basis of such a contest is that I could look at the data and more or less set the parameters that I considered appropriate (optimum). . .without actually doing an optimization.
I do not remember how that Contest ended. I would need to search the Forum Records. As I recall it from the top of my head we ended up rather similar in regards to yield. The Starting Point was of course identical. For historical data I can preset the Vortex parameters in anticipation using some sort of delay mechanism. Regular AIMers can do that too. Ocroft stated that he could, on the average, beat any AIM Investor that was not using any Filters.
If I find the details of that Contest I will show it here again.
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PS
Could anybody give me a hint on the dates Ocroft disclosed his Methotd to the AIM Board?
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