PhaseTrader Indicators

Transcription

1 PhaseTrader Indicators PhaseTrader Tools for TradeStation Radar PhaseTrader is a Trademark of Derivative Concepts, LLC.

2 Copyright 2018 Derivative Concepts Homepage: Registration: Charts created with TradeStation. TradeStation Technologies, Inc. All rights reserved

3 The PhaseTrader tool suite includes signaling indicators that can be used to create and test custom scenarios that mark trade entry and exit points. Alerts are generated according to specific pre-defined conditions such as a reset of the FlexTune calculation following a peak meeting specific size criteria. Alerts can also be triggered when signals generated by different indicator tunings confirm each other. Special versions of the signaling indicators have been adapted to run in TradeStation Radar. The radar screen versions support simultaneous monitoring of hundreds of tickers for the specific indicator scenarios chosen, in any timeframe. PhaseTrader Lead Lag ranks a list of tickers based on price spikes calculated using a pre-selected window. Rankings can be updated using any frequency from 1 second to days or even weeks.

4 The signaling indicators are used to test trading strategies built around specific rules and tunings for the FlexTune indicator. The chart on this slide marks entry points for gold trades green up bars are long entry signals; red down bars are short entry signals. A powerful 65 point rally followed twin entry signals in early December When gold leveled off in early January, the indicator marked another set of long entry signals which were immediately followed by another 30 point rally. The first negative short signal appears in mid-january as the price begins to trail off. Over the next couple of months, gold fell $50 (off the right side of the chart). Gold Futures Dec Jan near month contract 60 minute bars

5 Conditions can be optimized for individual tickers to provide a very high signal-to-noise ratio. The example on this slide reveals a single buy signal during an entire month of 30 minute bars for Apple Computer. The stock climbed 22 points during the 10 days that followed. Radar Screen versions of these indicators allow us to combine a large number of high signal-to-noise ratio tests into a single view. Apple April 19 May 22, minute bars

6 This Radar Screen page is configured to simultaneously run 102 instances of the signaling indicator displayed on the previous chart using 5- minute bars. The list of tickers includes all S&P 100 stocks along with the underlying index. Data was collected during the final minutes of trading on May 21, 2018 a strong up day in the market when 392 stocks in the S&P 500 were up, and overall index climbed 29 points. But near the closing bell when institutional traders are most active, just 9 stocks triggered buy signals. At the same time, there were no sell signals. The next day, stocks opened mixed and continued oscillating between slightly up and slightly down for the remainder of the trading day.

7 Radar_Lead_Lag allows us to sort a large group of tickers according to price change behavior measured in any timeframe from seconds to weeks. The listing below ranks S&P 100 stocks by price change during the sharp rally on 5/21. Comparing this information on up and down days allows us to identify tickers that routinely outperform or underperform rallies or declines. The Overall index (marked) outperformed 80% of the underlying stocks a distortion that appears when money first flows into S&P futures and the underlying stocks follow.

8 This chart ranks individual stock performance across the S&P 100 during the final 30 minutes of trading on 3/21/2018. During this timeframe when institutions are most active, only 10 stocks rallied with 73 tickers outperforming the overall index. This negative closing signal was highly relevant because stocks were unchanged for the day. The next day, the S&P 100 fell 32 points (2.7%) with 88 stocks outperforming the index.

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