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I'm trying to come up with an indicator that will show the performance (+ or -) of a security relative to an index (usually the Value Line unweighted). The MetaStock "Relative Performance" indicator does a good job, but it's a graphically/plotting indcator only; not a formula that can be referenced in an Exploration.
Question: does anyone have a formula that replicates the MS "Relative Performance" plot ?
(simply dividing the security by the index does not do it. I need something to normalize it center around 1 or 0.
Thanks. ....................... Tom .............................
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Hey T-
Welcome to the forum!
Try searching for the posts related to Custom Index or custom indices. You can do this on a small scale using the security() function; or, you can look at using the forumdll (early version), or compiling the code that Patrick has written yourself. Alos, there may be some 3rd part solutions available... perhaps SpyGlass, but I've never used it myself. Anyway, that should get you going.
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Tom, it sounds like you need something akin to the URSC kit.
jose '-)
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Rank: Advanced Member
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How could I forget the URSC? LOL! I'm still reading the documentation, but it is right at the top of the list too! Sorry!
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Rank: Advanced Member
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Thanks for the replies guys. The URSC plug in looks great ! Actually, more than I thought that I needed, but probably what I'm actually looking for. Super !
=D>
Jose's site has alot of info., I will spend some time there looling, exploring and (trying to) understand.
Take Care & Happy Holidays + a Great New Year. Good Trading. .............. Tom ...............
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Rank: Advanced Member
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FYI:
Here's a quick indicator that compares the relative strength of a security, to an Index (in this case VLE) over a 20 day period. Positive values are stronger than the Index, negative weaker; the value indicates the strength.
VLE:= Security("C:\\data\\active\\$VLE",C);
Sum((ROC(C,1,%)- ROC(VLE,1,%)),20)
It's simply the sum of the 1 day difference of the % change, over 20 days. Obviously, this is a momentum type indicator, but it is equally valued over the entire 20 day period. Hopefully of value to others. Take Care.
................. Tom ....................
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Rank: Advanced Member
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One final thought on this subject.
For those interested in Relative Strength Investing, and need a formula, especially in an Exploration, to compare different securities directly to each other. Here's a link to a discussion on how to write a formula set to make that "apples to apples" comparison. One draw back is having to determine a fixed "look back" period, but this link should be of great value to those interested.
Good Trading ! :D
http://www.incrediblecha...echnical/price_ratio.htm
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Rank: Advanced Member
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TH, I can see at least two major problems with the simple RSC strategy at Incredible Charts.
"The Price Ratio is calculated using the ratio of closing price to that of another security, on the first day of the chart."
1) Depending on the number of chart periods loaded (and the amount of missing data since bar one), the RSC will shift from chart to chart - making "apples to apples" comparisons impossible.
2) The basic RSC formula described at Incredible Charts, plots an RSC that is up side down and also does not give a true RSC %:
[code:1:ad63c2440d]
Index:=Fml("Your index path here");
InverseRatio:=ValueWhen(1,Cum(1)=1,Index/C);
step2:=C/Index;
step3:=step2*InverseRatio;
PriceRatio:=1-step3;
PriceRatio
[/code:1:ad63c2440d]
jose '-)
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