Author: Philipp

Implied Volatility: Data, Indicators and Usage

Implied volatility is the market’s expectation of future moves. This article will show you a simple way to access Refinitiv Eikon data in Tradesignal, visualise it and scan for exceptional volatility in stocks and ETFs.¬† Replacing historical volatility by implied volatility will give you new insights to risk management and options trading.

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Drawdown - Days to recovery of equity chart

A Graphic Approach to visualize Drawdown

Trading is about time and money. Combining these two figures into one drawdown indicator gives you a visualization of these two key factors. Trading strategies experience drawdowns from time to time. This is nothing you can avoid. You only can make sure to adjust the trading strategy if the current drawdown exceeds the historic one. So, one key number will

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Sharpe Ratio comparison of two assets

Sharpe Ratio Indicator: Scan for Performance

The Sharpe Ratio is a measure for risk-adjusted returns, developed by Nobel Laureate William F. Sharpe in 1966. It describes the volatility-adjusted excess returns of an asset over a risk-free return. This article highlights the thoughts behind the Sharpe Ratio formula and some practical applications of it when selecting different asset classes.

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Outperformance Portfolio Backtest

Outperformance: Find the right Stocks to beat the Index

Whenever you try to beat an index you will have to be invested in an asset which outperforms your benchmark. This article is about how to calculate outperformance and how to make use of it. In its most simple definition outperformance just means that one asset is performing better than an other asset. But this simple definition is not enough for investors.

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Volatility projection Indicator

Volatility Projection

Today the market moves up, tomorrow it might move down, but is this of any importance or just random noise? This volatility projection indicator will tell you if there is something exceptional happening. Standard Deviation and Volatility Projection The standard deviation of market movements is a widely used measure to define exceptional events on the market. An example: Bollinger Bands 

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Crash Correlation index can be used for better hedging an index

Crash Correlation Indicator

The crash correlation indicator will tell you if a specific instrument is a good source of diversification of your portfolio. As you know, correlation can be a tricky thing. Under normal conditions a stock might only be loosely correlated to its index, but when there is a strong market movement, correlation will change to nearly 100%. This indicator visualizes this

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How to detect a bullish or bearish divergence

Anticipate Trend Changes early, using Bullish and Bearish Divergence

Divergences between an indicator and the price can be powerful signals for a trend change. This post will show you how to program an indicator to automatically detect and visualise a bullish and bearish divergence by using so called arrays. What is a Bullish or Bearish Divergence? A perfect example of a bullish divergence is shown on the chart below:

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How to avoid Failures in Multiple Time Frame Trading

Programming a multiple time frame trading strategy is a great thing to do, but there are certain traps. And if you don`t know them, you might accidentally look into the future and get an over optimistic backtest result. This article gives you the needed information to avoid these traps and build valid multiple time frame trading strategies. The Differences between

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How to smooth a Candlestick Chart

Smoothing a Candlestick Chart

A little bit of smoothing can remove the random movements of the market without introducing too much lag. This 10 line Tradesignal code shows you how to get a smoothed candlestick chart and remove a lot of stress in trading. The screenshot above shows you a daily candlestick chart of EURUSD and a smoothed version below. This is done with

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