Hi, if using a large portfolio and I wanna exclude penny stocks or stocks below a certain price range - what block can I use and do I have to use the "qualifier" "indicator symbol" with it?
Can I then use such (above) rule and apply it only below a certain trendline and not apply it above this certain trendline?
Any help highly appreciated, have a great day.
Can I then use such (above) rule and apply it only below a certain trendline and not apply it above this certain trendline?
Any help highly appreciated, have a great day.
Rename
You'd use Indicator Compare to Value, and use "Close" as the "indicator." You'll find OHLC/V at the top of the indicators drop down list.
To account for splits while backtesting, really you should use the SplitRev indicator and ensure you have a fundamental provider enabled that supplies split info.
For example, before AAPL's 2:1 split in 2005, it was trading in the $70 range, not near $1, which is the effect of all future splits.
For example, before AAPL's 2:1 split in 2005, it was trading in the $70 range, not near $1, which is the effect of all future splits.
Thank you for replying, gentlemen. I already have been using "splitrev" blocks with my strategy, that's what actually caused my confusion.....!
When using splitrev indicator I'm still getting signals for stocks below 1,0. (as 1$ was my parameter)
If opening the chart of this strategy and pointing over an entry signal I'm seeing 2 different price levels between the actual chart and the splitrev indicator. ie., NVDA (in 2008) would mark an entry price of 0,259US$ on the chart, while the splitrev indicator shows me the (cleared of splits) price of 10,60US$ on that day.
Still not sure if the strategy is buying stocks below 1US$ or not?
(screenshots of splitrev block and entry signals of a backtest attached)
Thank you.
9794-splitrev1b-pdf
When using splitrev indicator I'm still getting signals for stocks below 1,0. (as 1$ was my parameter)
If opening the chart of this strategy and pointing over an entry signal I'm seeing 2 different price levels between the actual chart and the splitrev indicator. ie., NVDA (in 2008) would mark an entry price of 0,259US$ on the chart, while the splitrev indicator shows me the (cleared of splits) price of 10,60US$ on that day.
Still not sure if the strategy is buying stocks below 1US$ or not?
(screenshots of splitrev block and entry signals of a backtest attached)
Thank you.
9794-splitrev1b-pdf
If the idea is to backtest stocks based on the actual price traded on that date, then use SplitRev as a filter. Of course the backtest will show the split-adjusted price because that's the primary series of data that you're backtesting. SplitRev is only a trading filter.
Failure to backtest using SplitRev when comparing price to a value is peeking - because historical price data is adjusted for future splits.
Imagine a stock trades at $10 today and it splits 20:1 tomorrow - which puts the price "today" at $0.50.
If the stock had met all the other requirements today, you would have bought it, right?
Failure to backtest using SplitRev when comparing price to a value is peeking - because historical price data is adjusted for future splits.
Imagine a stock trades at $10 today and it splits 20:1 tomorrow - which puts the price "today" at $0.50.
If the stock had met all the other requirements today, you would have bought it, right?
Hello Cone, I have now tried both variants. Once with Close>10 and once with SplitRev>10. The results were identical in both backtests. What could be the reason for this? Should Close>10 not take the splits into account or am I missing something?
...and what about the volume? That would also have to be adjusted.
...and what about the volume? That would also have to be adjusted.
Strange, after restarting WealthLab I now have different results.
What about the volume? If I set Volume*Price as a default, for example, the minimum should be 10,000,000. Is it then correct if I enter this as a formula (e.g. with the Eval indicator) or do I also have to realise this with another indicator so that it is correct when split-adjusted?
What about the volume? If I set Volume*Price as a default, for example, the minimum should be 10,000,000. Is it then correct if I enter this as a formula (e.g. with the Eval indicator) or do I also have to realise this with another indicator so that it is correct when split-adjusted?
If you use Norgate there's an indicator called OriginalCloseNorgate which gives you the point-in-time historical close price.
@rainfield: Thank you!
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