Charting Recommendations

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Postby billybob » Sun Sep 07, 2008 1:49 pm

There are a couple of things associated with Bollinger Bands that I haven't been able to find. The first is bandwidth. This can be used to identify volatility breakouts by identifying the narrowest band over the past X months. The second is %b which shows where the price is in relation to the band. The top band is typically 100, the middle is 50 and the bottom is zero. Readings of +120 and -20 are used as reversal signals.
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Postby Overload » Sun Sep 07, 2008 7:32 pm

There are a couple of things associated with Bollinger Bands that I haven't been able to find. The first is bandwidth. This can be used to identify volatility breakouts by identifying the narrowest band over the past X months. The second is %b which shows where the price is in relation to the band. The top band is typically 100, the middle is 50 and the bottom is zero. Readings of +120 and -20 are used as reversal signals.

I'd need to know some specific details on what you're looking for, but I believe this can all be programmed into the charts right now. For example, you could identify the narrowest band over the last x months, but how would you want this displayed on the charts?

As for the %b price/band relation, I'd need to know some details (such as a formula or article) that describes this. But again, I believe each of these are things that can already be done.

Pete
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Postby billybob » Mon Sep 08, 2008 9:55 pm

Regarding the Bollinger bandwidth, I don't need to see it on a chart. What I am looking for is a nightly list of stocks and indices that currently have the narrowest bandwidth using a lookback period of the past X months (6 months is typically the default). This would give me a list of candidates that are likely to have a volatility breakout. You can find more on this subject at www.bollingeronbollingerbands.com, >Methods>Volatility Breakouts.

Regarding %b, a system is described in Trade Like A Hedge Fund by Altucher starting on page 67, Playing The Bands. They assign the top band a value of 100; the middle band a value of 50 and the lower band a value of zero. If a stock has a value of 120 or greater, it is 120% of the top band it is considered a sell signal. If a stock has a value of -20 or more, it is 20% below the lower band and it is considered a buy signal. If we could set our scans for %b, we could have a nightly list of candidates based on whatever high or low parameters we chose.
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Postby Overload » Tue Sep 09, 2008 9:35 am

Regarding the Bollinger bandwidth...

Thanks, I was able to find his exact formulas on this page:

http://www.bollingerbands.com/services/bb/?page=5

Based on the above definitions, here are the formulas that you can use in StrataSearch:

%b: (Close - BBL(L, 20, 2)) / (BBU(H, 20, 2) - BBL(L, 20, 2))

Band Width: (BBU(H, 20, 2) - BBL(L, 20, 2)) / mov(C, 20, s)

You can use the above in StrataSearch in many different ways:

* Add the above values to a chart for display.

* Place either (or both) of the above formulas into the Screener to produce a list of stocks that have the highest or lowest %b or Band Width values on any given day.

* Create a Strategy or AutoSearch Trading Rule that triggers buy or sell signals based on the %b or Band Width values.

* Add the %b or Band Width value to the Rank field of a Strategy or AutoSearch Trading Rule so that your trading system always buys the stock with the lowest %b or Band Width value.

So, depending on how you set it up, you can not only produce a list of stocks for today, but you can also back test the method and see how well it's performed historically. Hopefully this helps, but feel free to ask if you have additional questions on this.

Pete
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Postby taowave » Tue Sep 09, 2008 9:49 am

For the second formula,you could do something like

c>=1.2*bbu(c,14,2)or c<=.8*bbl(c,14,2)

then set up colums for c/bbu(c,14,2)

and

c/bbl(c,14,2)

I am thinking about the first one..Want to set up BBU-BBL as a percentage,just not sure if I should set the denominator to the close or the MA

Allan





billybob wrote:Regarding the Bollinger bandwidth, I don't need to see it on a chart. What I am looking for is a nightly list of stocks and indices that currently have the narrowest bandwidth using a lookback period of the past X months (6 months is typically the default). This would give me a list of candidates that are likely to have a volatility breakout. You can find more on this subject at www.bollingeronbollingerbands.com, >Methods>Volatility Breakouts.

Regarding %b, a system is described in Trade Like A Hedge Fund by Altucher starting on page 67, Playing The Bands. They assign the top band a value of 100; the middle band a value of 50 and the lower band a value of zero. If a stock has a value of 120 or greater, it is 120% of the top band it is considered a sell signal. If a stock has a value of -20 or more, it is 20% below the lower band and it is considered a buy signal. If we could set our scans for %b, we could have a nightly list of candidates based on whatever high or low parameters we chose.
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Re: Charting Recommendations

Postby taowave » Thu Mar 19, 2009 12:14 am

Hi Pete,

As SS continues to get better and better,I would really hope that the Charting improves a bit as well..It would be nice if we could extend/snap trendlines,and be able to compress/expand the chart on the screen..

On a side note,as you have Point and Figure capability,could you see if the developer could add the proper settings??

Right now you have one box value which renders P&F useless..which it may be anyway:)
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Re: Charting Recommendations

Postby Overload » Thu Mar 19, 2009 10:42 am

It's still too soon to say what we'll focus on for the next major release, but charting remains on the list. Thanks for the input.

Pete
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Re: Charting Recommendations

Postby JLG » Tue Jun 02, 2009 10:02 am

I find the charting to be very helpful for end of day as is.

But I would love it if I could feed my real time Interactive Brokers data into a chart from their API. I would apply my end of day signal formulas to the most recent price or high and low so far in the day to monitor progress toward signals and trade these signals intraday prior to the close. Since I use limit orders for many of my signal entrances, this would be relatively straight forward for me, especially when my signals are based on highs and lows as opposed to close. This might be a start toward an intraday version of StrataSearch which is probably my fondest dream...
JLG
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Re: Charting Recommendations

Postby Overload » Tue Jun 02, 2009 10:19 am

Thanks for the suggestion. We're not yet making any enhancements to the charts, but it's good to keep a list going.

Pete
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Re: Charting Recommendations

Postby JLG » Wed Jun 10, 2009 9:24 am

A few very minor suggestions, but since you asked... I would make the font size for information at the top of the panel adjustable. Negative (-) signs are hard to see on my screen resolution and I have missed seeing them. The number can be hard to read as well in some colors. I would make the range on each panel user configurable. Values sometimes stick to the top or bottom of the panel and minimize their meaning. I would make it easier to edit a calculation that was entered in error and has all zero as values. Now I delete the panel and start over since I do not seem to be able to click on it.
Last edited by JLG on Wed Jun 10, 2009 2:44 pm, edited 1 time in total.
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Re: Charting Recommendations

Postby Dacamic » Wed Jun 10, 2009 10:29 am

JLG's three suggestions are on my "wish list", too, yet I've not previously discussed them with Pete (for whatever unknown reason). Thank you for mentioning them.
Steve
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Re: Charting Recommendations

Postby ovtrading » Wed Jun 10, 2009 11:11 am

Just noticed this thread...I echo the above user's comments asking for log scale on the equity curve. Over 10 years or so, this would be really useful.

To me, the weakest thing about the StrataSearch charts is not their capabilities per se, but the fact that it is so difficult after a one click run to simply see a chart of your trades. This has to be the most common thing someone would want to do with the charts and it is almost impossible. First, the charts have to be created one by one for each of the strategies. Second, the values are always plotted in different panes regardless of if they should be on the price pane. This should be a one-click operation.

Hoping I haven't missed something that makes this easier...
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Re: Charting Recommendations

Postby Overload » Thu Jun 11, 2009 9:58 am

All great comments and suggestions. Thanks for the input.

Pete
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Charting revisited

Postby taowave » Mon Aug 31, 2009 8:59 pm

Hi Pete,
Just wondering if you were still thinking of making the charting package a bit more flexible and improving what is currently there.Things like having a cursor that doesnt disappear when you scroll thru the data,a bit better trendline capabilities etc..Aslo,when you apply fib retracements,there is no way to edit the "retracements" and it often becomes a jumbled mess.You offer various capabilities like P&F charting,but there is no way to properly adjust box sizes so it is rendered useless....

The tools are there,it just appears that the developer(I know its not you) took alot of shortcuts and didnt finish what he started..

Thanks,

Allan
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Re: Charting Recommendations

Postby Overload » Tue Sep 01, 2009 9:07 am

I merged your post into the ongoing Charting Recommendations thread, just to keep all the thoughts on charting in one place.

Sorry, but chart improvements are still not on the short-term list. There is still a great desire to do things in StrataSearch that can't be done anywhere else, so that's where the development focus will remain for the time being. It's not very exciting (or efficient) to put a great deal of development time into something that's already been done quite well by other software packages, so that's why the development focus in StrataSearch tends to focus on things that aren't available elsewhere.

You're absolutely right about the charting limitations. But, again, it's proved to be sufficient for most users that use StrataSearch primarily for its back testing and automation. I would definitely recommend searching for a supplemental charting package if it's important to you and you want something beyond the StrataSearch capabilities. It isn't uncommon for high-end traders to diversify their research across multiple software programs.

Pete
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