Please explain the weight factor in rotation strategies. What is it and how it calculated? Thank you.
Rename
Please find it explained in the Wealth-Lab Help > Strategy > Rotation
Further reading: QuickRef > Transaction > Weight
https://www.wealth-lab.com/Support/ApiReference/Transaction
https://www.wealth-lab.com/Support/ApiReference/Transaction
I checked there before submitting my question. What are "weight value" and "weight factor"? The Help reference does not explain these.
https://www.wealth-lab.com/Support/ApiReference/Transaction
The two references provided in the previous answers mention "weight" but do not define what it represents, how it's calculated, or what it should mean to the user. Below is a screenshot showing the signals from a backtest of the sample strategy "UltOsc Rotation." "Weight" is the right-most column. How was the value 0.4607 calculated for DPZ's Sell signal? Since HIG's Sell signal has a higher "Weight" than DPZ's, should I prefer selling HIG instead of DPZ? Is buying WIM (weight=0.6371) to be preferred over buying WEC (weight=0.0717)? If so, why?
The weight factor in a rotation strategy refers to simply the value of whatever indicator you’ve selected. It does not relate to Transaction.Weight, which is different. Transaction.Weight is used to determine which trade to take in case there are multiple candidates and not enough simulated equity. It assumes a random value which you are seeing in that column.
Thank you.
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