“And when you want something, all the universe conspires in helping you to achieve it.” – The Alchemist by Paulo Coelho
A.O.T.S. = ALIGNMENT OF THE STARS
I will not bring you to outer space just because the title contains STARS and the well-known line from The Alchemist has UNIVERSE on it. The $93k is not out there. It’s just somewhere on my spread sheet.
AOTS is not a product of my imagination. It is my strategy while trading stock of a company, CFD or equity investments. This has been developed and famed by Zeefreaks, one of the best trader in the Philippines. Yes, I am a stock trader since 2016 in the Philippines, USA and London Stock Exchanges. You will be able to see it on my Instagram account profile and some of Facebook posts.
If I see AOTS formation, it only means GOOD FORTUNE will come. And yes, the STARS have aligned for me to find out the $93k.
You read it right, I manage to find the $ 93k. Hooray!
HOW DO I FIND OUT THE $93k?
Two things: (1) not all transactions from System B must be included on the calculation and (2) foreign currency exchange conversion rate.
Let’s go back to my previous blog post before I fully expand the 2 things I mentioned above.
- System A + System B = System C
- When I tried to prove this, System A + System B ≠ System C
I reached out and tried to explain this scenario to PIH Boston Finance. Luckily the team managed to help me to understand those transactions to be excluded on my calculation during the time the systems were consolidating. This was a new learning to me in finance and accounting while working on a non-government organization like Partners in Health.
The foreign currency conversion rate or forex rate played a vital role for the discovery of the variance. Let me illustrate to you how I figured it out.
- System A – majority of transactions are in MWK (Malawian Kwacha)
- System B – majority of transactions are in USD (US Dollar)
- System C – will consolidate all transactions in USD
- Budget Rate : USD 1 = MWK 761
- Actual Average Rate: USD 1 = MWK 732
See the difference? Budget rate was higher than the actual rate. The huge gap between the rates gave a huge variance on the computation.
On my project template I used BUDGET RATE but, I should be using ACTUAL AVERAGE RATE to remove the difference of $ 93k!
System A (MWK converted to USD @ Budget Rate) + System B (already in USD less transactions to be excluded) = System C (all in USD)
All the UNIVERSE conspired, and all the STARS aligned that very moment to prove that System A + System B = System C and to discover and fully settle the difference of $ 93k.
So where is the $ 93k? No need to ask again. Case closed!
To all my readers and followers of this story and to my fellow PULSE 10 volunteers, I am wishing you all that the UNIVERSE conspires and all the STARS will align to bring GOOD FORTUNE to us.
See you on my next story.