Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

MixedHerbs

Comparing Relative Strength

Recommended Posts

Hello. :)

 

I have a pension policy that allows me to allocate money across 361 funds. I want to build a list of those funds in Excel together with price history. I would calculate Relative Strength by comparing each fund to an index made up of all funds in the list.

 

My intention is to sort the list so that the funds with the highest strength appear at the top.

 

My question is, how do you compare Relative Strength over time? Comparing it on a single day is easy, but choosing a fund that has the higher strength over the last three months (say) is trickier.

 

Peter.

Share this post


Link to post
Share on other sites

Hi,

This is exactly what I have been doing. I copy the latest fund prices into Excel weekly, but then I actually import those into Amibroker for checking. This let's me also see the charts and gives a much better feel than just looking at the figures. I don't have a system as such, but I rank then by 3 weeks moving average change, and also look at the 1 week change, and maximum recent losing and gaining weeks. Works pretty well for keeping me in the upper performing funds so far.

Share this post


Link to post
Share on other sites
Hello. :)

 

I have a pension policy that allows me to allocate money across 361 funds. I want to build a list of those funds in Excel together with price history. I would calculate Relative Strength by comparing each fund to an index made up of all funds in the list.

 

My intention is to sort the list so that the funds with the highest strength appear at the top.

 

My question is, how do you compare Relative Strength over time? Comparing it on a single day is easy, but choosing a fund that has the higher strength over the last three months (say) is trickier.

 

Peter.

 

Peter,

 

I do not know anything about you. But, if your pension policy is to be used for retirement, then you are choosing the absolute worst strategy you can choose to allocate the money you need to have later in life when you no longer wish to work. You are infinitely better off allocating your pension assets in a manner consistent with your risk profile and making money over time instead of trying to time the market using a lagging indicator. Keep your retirement money sacred. The average mutual fund buyer losses money in a mutual fund because they buy at the wrong time and sell at the wrong time. Your strategy puts you firmly into this group.

 

If you stand to inherit a boat load of cash or have a job or live in a country where you will receive a guaranteed payment at retirement that will be more than enough, then i suppose you could risk losing the bulk of your pension account and it won't make a difference to you.

 

MM

Share this post


Link to post
Share on other sites

Mixed,

 

i use this techinque in excel. do you have a data feed? my data feed is eSignal.

it supports DDE. this allows reading data (stock prices) directly in excel.

if you have a data feed and are calculating the relative strength, you only need to add a row that display's (current) today prices.

 

here is the eSignal support:

 

=winros|LAST!nov

 

gets today's value for NOV

(other prices available, eg change, high, low,)

peter.

Share this post


Link to post
Share on other sites
MightyMouse, - sector relative strength is a well researched anomaly that's documented to lead towards abnormal. Check google scholar and elsewhere for confirmation.

 

Friend, you may gamble your retirement money any way you wish. Go for it and I will hope a long with you that I am wrong in this instance.

Share this post


Link to post
Share on other sites
Hello. :)

 

I have a pension policy that allows me to allocate money across 361 funds. I want to build a list of those funds in Excel together with price history. I would calculate Relative Strength by comparing each fund to an index made up of all funds in the list.

 

My intention is to sort the list so that the funds with the highest strength appear at the top.

 

My question is, how do you compare Relative Strength over time? Comparing it on a single day is easy, but choosing a fund that has the higher strength over the last three months (say) is trickier.

 

Peter.

 

Ending Fund Price - Beginning Fund Price

__________________________________

 

Ending Index Price - Beginning Index Price

 

 

 

The higher the ratio the higher the RS.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • @sxiqxx, Well done on making your first post a promising strategy. @everyone, post up if you want this coded into an EA. Although I switched to TradeStation, I still have an active MT5 demo with MetaEditor. I can code it without referencing object oriented programming which should be retroactively compatible with MT4. Let me know...
    • Please allow me to retort (in jest): RESPONSE 1 : Get a job supervising others where you're in control of performance reports and ride those others 100%. This makes your performance 100% with little to no effort.   RESPONSE 2: Feel free to piss off your boss but stay nonviolent. When the side effects of his viagra and testosterone boosters cause him to physically assault you, you have the legal upper hand. This can result in a boatload of trading capital.   RESPONSE 3: Feel free to have intimate relations with your boss if she finds you attractive. Rest assured that mum's the word because once again, you have the legal upper hand. This can also result in a boatload of trading capital.   RESPONSE 4: Don't be fake friends with any enemies... unless you need information from them. Being fake friends with everyone will cause you to become an empty shell of a person with no direction in life.   REPONSE 5: Get your boss to become reliant on your performance (really, just the performance of your subordinates), and then plan an "overheard" conversation wherein you fake an interview with another potential employer. You'll probably get a pay increase or a promotion.   RESPONSE 6: If you can give your 75% percent to a project, give 50% and rely on your legal upper hand(s). Learn to write trading algo's during your other 50%.   RESPONSE 7: Take all of the office boys out to nightclub where you merely sip soft drinks on a weeknight. Upon your return to the office in the morning, inform the security guards that all of the office boys are intoxicated. Your boss will love you for it.   RESPONSE 8: Never try to prove your client wrong or find faults in their processes, but do secretly collect their information in case you jump ship or "someone you know" decides to start his own company.   RESPONSE 9: Never stay in a firm for too long. Instead, use your ill-gotten capital to exit the rat-race and start trading.   RESPONSE 10: Trading pays more than your career. Interpersonal skills are now irrelevant. Use your technical skills for trading. Never stop learning and keep updating your technical skills.😁
    • There are a lot of trading strategies like elliot waves, wyckoff etc so we need to apply those who best suited to our need and are understandable too.
    • Scalping can be good during the high volatile markets however the new traders should be careful while entering and exiting the markets too quickly since they can make losses as well. If the broker support news trading we can make most out of the scalping in my opinion.  
    • In my opinion these candlestick charts are more easier to understand as compared with the other charts.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.