Replies to post #7650 on A.I.M. Users Bulletin Board (AIMUSERS)

[Myst]

Well said Quarel......thanks!

Myst
http://stockwerld.com/xdevover.htm

[jibes]

Qarel.

New AIM is in the true sense of the definition AIM. AIM is "Automatic Investment Management" New AIM fit's into this definition. SR does not. I don't know about Vortex. I can never understand what Conrad is saying. #:)
I tried CDP but it did not work well but I see your point about it being similar.

Jibes
TrendSeekers at:
http://jibes0.tripod.com/trendseeker.html

[Conrad]

Hi Qarel,

You have an excellent understanding of how Lichellow's AIM and many(maybe most?) of its variants work. With the Aggression factors at zero Vortex does indeed always aims(!!!) to return to the original equity value(Maybe I could call that a Pivot), and to cream off the cycle profits.

If however the Buy Aggression is larger than the Sell Aggression Vortex switches to an ever increasing equity base: cycle profits are turned into shares(Growth Mode). With the Sell Aggression larger than the Buy Aggression portfolio value increases with the emphasis on cash generation(Liquidation Mode).

If Vortex qualifies to be called an AIM-system is not a matter of a rigorous definition of the PC-ratchet with a value of only 0,5*Buy(Lichello). Vortex also had a PC-ratchet in the fashion of a variable factor

PC2=PC1 + f*Buy

In this sense Vortex works exactly like AIM BTB.
Lichello used a Moderator M to calculate the Buy = M*(PC-V)

M=(PC-V*(1+s))/(PC-V)

with s being the fractional Lichello SAFE.

Vortex used a Moderator M to calculate the Buy = M*(PC-V)

M=1/(1-f)

with f being the Vortex Buy Aggression.

Originally when I developed my alternative to the Lichello AIM I used my PC-Update only for buys, just like in the Lichello AIM. Later I extended the PC-Update to the Sell side as well to make the system symmetric. This created a much more rapid increase in capital growth because the value swings due to volatility became much greater, resulting in more effective automatic investment management.

As I remember from Lichello's Book the name AIM was not at all exclusively related to the PC-Update but rather to his complete system of Buy Low Sell high with partial buy/sell management that was supposedly automatic. Considering this one could not really restrict the use of the name AIM for a particular buy/sell methodology.

By the way, since you, understand Vortex AIM better than most people do, how about translating my Dutch book the Vortex Method into plain English for me?

Maybe then people will understand Vortex AIM!

:-)