Replies to post #1217 on A.I.M. Users Bulletin Board (AIMUSERS)

[Conrad]

Banjanxed,

This Board is killing me. Buts it is fun. The problem of running out of cash is universal for any investor that dares to invest in a Bear Market(I think I got it right this time...When I was kid I was chased by a real nasty bull one day when I simply walked into the meadow that was his domain. It scared the hell out of me and I ran a half-a-minute mile to get out of there. This bull had his head close to the ground ready to kill me any which way he wanted to. As is evident, my lightning speed saved me from a horrible death.

So, the trick of keeping your cash till the bottom of the market is not an AIM issue. Within the framework of the AIM we can focus on fool proof methods to improve the standard AIM by stretching the money you have...any systematic method that is price-driven and allows you to stretch the money you have to the away from the beginning of the price drop will help you. How you implement it is simply a technicality...if you are smart enough to notice that already two drops have occurred then you can increase the buy order size. This can be dome automatically as well. That is the point. How effective that is done depends on how complex you want to make the system. There is not one solution.

The Vortex Program is not available in English yet. I want to mention that this acceleration "thing" is not yet an automatic feature of my program. The method at this time is simply using a low aggression to start out with and as the volatility of the stock lends itself to it(sustained drops) the parameters are adjusted to increase the Buy Resistance and the Buy Order Magnitude. In my Dutch Book The Vortex Method I explain a method that will solve this problem more systematically and I present a method that will optimise the cash disbursement.

Now, as to explaining my methods in detail, I have gone quite far in publishing Chapter 6 of the English translation I am working on. I have an Excel spreadsheet that Lou Dina made for me and the Vortex Method can be demonstrated with it. I am still making that basis spread sheet into a form so that it will be a Functional Test Bed for the Vortex Program...and now I run into a dilemma: One the one hand I like to disclose all the details because I am like that...I like to explain things. On the other hand I am advised not to disclose all the details because no one will buy the Vortex Program if they find out they can do it with an Excel spreadsheet themselves. I will think about is some more. People that read my book will know the ideas but that is not the same as handing out a fully functional system in which all the programming details are represented. I will come back to this issue.