Rank: Newbie
Groups: Registered, Registered Users
Joined: 9/19/2005(UTC)
Posts: 4
|
Hi,
I'm trying to plot the Beta Indicator. I'm following the instructions on the formula but I continue receiving this message box saying "Custom Indicator Error".
I opened the security and I wish to calculate Beta. I also opened the index, then I drag the prices from the index to the security chart. It asks if I want to overlay in new scale on the rigth, left and so on. I've tryed all options.
So, I have the security chart and the index chart in the same inner window. Then I went to the Indicator Quick List and drag Beta on top of the index chart. This is when I received the Erros message.
I've done the other way around, I mean, I drag the price from the security to the index chart and then used the Beta using the security and I got Betas. Is this right this way?
Thanks
What do I do?
Thanks
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 3/19/2005(UTC)
Posts: 2,995
Was thanked: 14 time(s) in 10 post(s)
|
|
|
|
|
|
|
Rank: Newbie
Groups: Registered, Registered Users
Joined: 9/19/2005(UTC)
Posts: 4
|
I've already seen that post. I think I'm doing like it says there but I keep geting this message: Indicator must be applied to another indicator or price plot.
I'm really lost here
|
|
|
|
|
|
Rank: Newbie
Groups: Registered, Registered Users
Joined: 9/19/2005(UTC)
Posts: 4
|
well, I think help has lost itself somewhere :(
I'm trying to understand the Beta formula on Metastock with the one used in Finance courses. Here we use the covarience between the market and the security divided by the variance of the market. Is this the same formula that's on MetaStock?
Can you read the formula with me please?
I still haven't find a way to plot Beta like instruted. The only way I have managed was by doing things the other way around: Draging the security prices to the Index chart and then draging the Beta formula over the security prices plot. I think this has some logic because if I drop the Beta formula on top of the index prices it comes out with a one result and this is right, because 1 is the market Beta.
Nevertheless I've donne the maths on Excel and I came out with a diferent result. This is why I'm asking if it's the same formula.
Thanks again
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 9/8/2004(UTC)
Posts: 2,266
Was thanked: 1 time(s) in 1 post(s)
|
You are applying the idicator on your base security ...
You need to open 2 charts ... drag the price plot of one chart onto the other
Apply the indicator on the price plot you have copied ...
Patrick :mrgreen:
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 3/19/2005(UTC)
Posts: 2,995
Was thanked: 14 time(s) in 10 post(s)
|
Thanks Patrick for checking this... I just got a chance to pull it up in MS for the first time myself. I didn't have any troubles using the formula the way that it was presented in your original post.
Dedes-
You can also plot your beta in a new window by itself with this modified version of the code. Then you don't have to worry about dragging and dropping. Just change the paths to your security and index.
[code:1:d10127d09a]{Security}
A1:= Security("F:\\MetaStock Data\\SP500\\AAPL",C);
{Index}
A2:= Security("F:\\MetaStock Data\\SP500\\US&SPX",C);
{Beta}
((21 * Sum(ROC(A1, 1, %) * ROC(A2, 1,%) ,21))-
(Sum( ROC(A1,1 ,%) ,21) * Sum(ROC(A2, 1,%) ,21))) /
((21 * Sum(Pwr(ROC(A2, 1, %), 2), 21)) -
Pwr(Sum(ROC(A2, 1, %), 21), 2));[/code:1:d10127d09a]
|
|
|
|
|
|
Rank: Newbie
Groups: Registered, Registered Users
Joined: 9/19/2005(UTC)
Posts: 4
|
g_stockman,
Thanks for the code. I'm going to try it out.
But any of you can confirm if this Beta formula gets the same result as the Beta calculated by the covariance between the market and the security divided by the variance of the market?
And can you explain this Beta formula to me? What's ROC(a1,1,%) ???
Thanks
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 3/19/2005(UTC)
Posts: 2,995
Was thanked: 14 time(s) in 10 post(s)
|
Quote:But any of you can confirm if this Beta formula gets the same result as the Beta calculated by the covariance between the market and the security divided by the variance of the market?
I can't help with this... sorry.
[code:1:366af23cb2]And can you explain this Beta formula to me? What's ROC(a1,1,%) ???[/code:1:366af23cb2]
The modified code uses a hardcoded security name to create the indicator rather than having you drop the indicator onto an existing line study. I only performed 2 brief comparisons with the original formula, but it produced the same results for me.
ROC = Rate of change
a1 = the closing price of the security
1 = # of periods to examine for the rate of change
% = work with a % rate of change (instead of a points $ rate of change)
|
|
|
|
|
|
| Users browsing this topic |
|
Guest (Hidden)
|
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
