Rate of Annual Return

[156 10]

Hello, I have been reading a book and I read about the Rate of Annual Return, unfortunately I couldn't find the indicator...it looks interesting.

 

Here is a quote from the book:

 

The ‘Rate of Annual Return’ Indicator

The ‘Rate of Annual Return’ (ROAR) indicator is used to calculate the annual rate of returnof a share given its current rate of climb or fall. It achieves this by calculating the annual increase in price activity and then dividing it by the current share price. The result is thenmultiplied by 100 to convert it to a percentage.

Example

• Lets assume that a share is climbing at a rate of $2 per year.

• The current price of the share is $5.

• The ‘Rate of Annual Return’ would be 0.4 ($2 divided by $5).

• Converting this to a percentage we get 0.4 x 100 = 40%.

[brownsfan019 17]

Is it an actual indicator or just a math formula? If it's just a math formula that you plug #'s into, Excel will do the trick.

[156 10]

well it can be an indicator but I think a formula could work also, though you will constantly need to search for data to use a formula.. here is how the indicator should work ( I attach the screen shot) and also I searched on google and found some codes but I don't understand anything of coding .. here it is :

 

---------------------

 

// ROAR Version 1.0

 

Period=52;

X=Close;

LinReg=( Period * Sum( Cum( 1 ) * X,Period ) -

Sum( Cum( 1 ),Period) * Sum( X,Period) ) /

(Period * Sum(Cum( 1 )^2,Period ) -

Sum( Cum( 1 ),Period )^2 ) * Cum( 1 ) + (MA(X,Period) -

MA( Cum(1 ),Period) * (Period * Sum( Cum( 1 ) * X,Period) -

Sum( Cum( 1 ),Period ) * Sum( X,Period) ) / (Period *

Sum( Cum(1 )^2 ,Period) - Sum( Cum( 1 ),Period )^2 ) );

 

Graph1 = 200*(LinReg-Ref(LinReg,-26))/C;

 

 

// RAOR Version 2.0

 

TimeFrameSet(inWeekly);

RAOR = LinearReg((C-Ref(C,-26))/C*200,4);

 

Plot(raor,"RAOR",colorBlack,0);

 

 

---------------------

 

 

and here is another one:

 

 

// ROAR

 

Enter = 30; // Make it whatever you want

Cutoff = 20;

 

roar = int(5200*(LinRegSlope(C, 26)/LinearReg(C,26)));

roar30 = int(LinearReg(roar, 5));

 

for (nCntr=0; nCntr<BarCount; nCntr++)

{

if (roar[nCntr] >= Enter AND roar30[nCntr] >= Enter)

roar[nCntr] = roar30[nCntr];

else if (roar[nCntr] <cutoff> 0)

roar[nCntr] = 0;

else if (roar[nCntr] <= -Enter AND roar30[nCntr] <= -Enter)

roar[nCntr] = roar30[nCntr];

else if (roar[nCntr] > -Cutoff AND roar[nCntr] < 0)

roar[nCntr] = 0;

}

 

Plot(roar, "ROAR", colorBlack, 1);

Plot(Cutoff, "Cutoff", colorRed, 1);

Plot(-Cutoff, "Cuttoff", colorRed, 1);

 

 

what do you think?

 

Thank you!

[brownsfan019 17]

I think it could work very well in a bull market.

 

I'd love to see how it reacts in a bear / sideways market.

[156 10]

I think it could work very well in a bull market.

 

I'd love to see how it reacts in a bear / sideways market.

 

I am pretty sure it is used only for long signals due to its specifics - if you look at the chart it is "activated" when a certain value is reached - otherwise it is just standing by. Does the code makes sense to anyone who is up to date with programming? I would really love to see how it performs,

 

Thanks!

[brownsfan019 17]

I am pretty sure it is used only for long signals due to its specifics - if you look at the chart it is "activated" when a certain value is reached - otherwise it is just standing by. Does the code makes sense to anyone who is up to date with programming? I would really love to see how it performs,

 

Thanks!

 

Exactly. Long only = bull market.

 

Therefore, if not in bull market but if this provides long signals, will have hard time making money.

 

So once a bull market is identified, then I would consider use of something like this.

[156 10]

Exactly. Long only = bull market.

 

Therefore, if not in bull market but if this provides long signals, will have hard time making money.

 

So once a bull market is identified, then I would consider use of something like this.

 

I think it might be a useful tool if anyone can code it. There are so many markets, there will be at least one bullish to trade it As long as it can work I don't see a problem ... thanks!

[john.potter 10]

I think it might be a useful tool if anyone can code it. There are so many markets, there will be at least one bullish to trade it As long as it can work I don't see a problem ... thanks!

 

Hi Guys

I think this may be what you want, it is Alan Hulls ROAR indicator from his book "Active investing"

 

'Rate of Return' lndicator

Variablec: ord(o),LD(o),Roar(0),cutoff(o),Enter(0c)o, unter(52),P eriod(26);

For Counter = 52 downto 13 Begin

' "^ --;

I"""rRegValue(clos.,io.r.rt.r,0) > linearRegValue(close,Period,t0h)e n Period

= Counter;

End;

Cord = linearRegValue(close,Period,0);

iO = Co.a - Q.618 * Cord * AvgTiueRange(52)/Average(close,5)2

If LD < LD[l] then LD = LD[l];

If Cord < LD then LD = Cord;

ii i-."rn"gV"fue(close,26,0)>O then Roar = IntPortion (5200 * linearRegslope(close,26)/

LinearRegValue(c1ose,26)e,0ls)e R oar = 0;

iin";t t= 30 and IntPortion (LinearRegValue(roar,5,0)>)= 30 then Roar = IntPortion

(LinearRegValue(roar,5), )0;

Cutoff = 20;

Enter = 30;

if Roar < Cutoff then Roar = 0;

if Roar < Enter and Roar[l] = 0 then Roar = 0;

if Roarll] = 0 and summation(volume * MedianPrice'l3) < 120000 then Roar = 0 ;

iin.-ifj > 0 and summationivolume * MedianPrice,l3) < 100000 then Roar = 0 ;

if Cord = LD then Roar=O;

plotl (Roar,"Roar", darkgray,b lack' I );

plot2 (Cutoff, "Cutoff' , black , black , I );

 

This is supposed to work on Tradestation, Which I don't have.

 

I do have a bull charts version but have not messed with it much

 

if you want to know more just google Alan Hull or alan hull.com.au

Edited July 31, 2008 by john.potter

[156 10]

Hi Guys

I think this may be what you want, it is Alan Hulls ROAR indicator from his book "Active investing"

 

'Rate of Return' lndicator

Variablec: ord(o),LD(o),Roar(0),cutoff(o),Enter(0c)o, unter(52),P eriod(26);

For Counter = 52 downto 13 Begin

' "^ --;

I"""rRegValue(clos.,io.r.rt.r,0) > linearRegValue(close,Period,t0h)e n Period

= Counter;

End;

Cord = linearRegValue(close,Period,0);

iO = Co.a - Q.618 * Cord * AvgTiueRange(52)/Average(close,5)2

If LD < LD[l] then LD = LD[l];

If Cord < LD then LD = Cord;

ii i-."rn"gV"fue(close,26,0)>O then Roar = IntPortion (5200 * linearRegslope(close,26)/

LinearRegValue(c1ose,26)e,0ls)e R oar = 0;

iin";t t= 30 and IntPortion (LinearRegValue(roar,5,0)>)= 30 then Roar = IntPortion

(LinearRegValue(roar,5), )0;

Cutoff = 20;

Enter = 30;

if Roar < Cutoff then Roar = 0;

if Roar < Enter and Roar[l] = 0 then Roar = 0;

if Roarll] = 0 and summation(volume * MedianPrice'l3) < 120000 then Roar = 0 ;

iin.-ifj > 0 and summationivolume * MedianPrice,l3) < 100000 then Roar = 0 ;

if Cord = LD then Roar=O;

plotl (Roar,"Roar", darkgray,b lack' I );

plot2 (Cutoff, "Cutoff' , black , black , I );

 

This is supposed to work on Tradestation, Which I don't have.

 

I do have a bull charts version but have not messed with it much

 

if you want to know more just google Alan Hull or alan hull.com.au

 

Thanks for the code, I am on the task to code it for Metatrader4 but this part ...

Cord = linearRegValue

 

This uses another indicator? Linear Regression? Anyone has any suggestions what is the code of that indicator?

 

Thank you!

[brownsfan019 17]

I think it might be a useful tool if anyone can code it. There are so many markets, there will be at least one bullish to trade it As long as it can work I don't see a problem ... thanks!

 

As long as you are able to find the bullish markets, it may give you what you need. The question is - can you find the bullish markets?