|
PureBytes Links
Trading Reference Links
|
Shah,
Alpha and Beta are not functions. They are custom formulas that Meatastock included with the package. If you open the indicators you will find a description of each and how they are to be used. I have also included them below. I would think that the relative strength (RS) comparative is also another indicator that would be helpful to you in this regard.
ALPHA:
{This formula calculates Alpha. The custom indicator named Beta is required to plot Alpha. To plot Alpha:
1. Open a chart of the desired security.
2. Drag the price plot of the index you are comparing, into the chart of the security.
3. Drag this custom indicator from the QuickList and drop it onto the price plot of the index.
Note, this formula is set to calculate Alpha over 21 periods. To change the time periods replace each instance of 21 in the formula with the desired number of periods and also change the time periods in the Beta custom indicator.}
( Sum( ROC( CLOSE,1,%),21) -
( Fml( "Beta" ) * Sum( ROC( INDICATOR,1,%),21)))/21
BETA:
{This formula calculates Beta which is a measure of volatility of one security against another. This is typically used to measure the volatility of a stock against an index like the S&P 500. A value greater than one indicates the stock is more volatile than the index.
To plot Beta:
1. Open a chart of the desired security.
2. Drag the price plot of the index your are comparing, into the chart of the security.
3. Drag this custom indicator from the QuickList and drop it onto the price plot of the index.
Note, this formula is set to calculate beta over 21 periods. To change the time periods replace each instance of 21 in the formula with the desired number of periods.}
(( 21 * Sum( ROC( CLOSE,1,%) * ROC( INDICATOR,1,%),21))-
( Sum( ROC( CLOSE,1,%),21) * Sum( ROC( INDICATOR,1,%), 21)))
/
(( 21 * Sum( Pwr( ROC( INDICATOR,1,%),2),21)) -
Pwr( Sum( ROC( INDICATOR,1,%),21),2))
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, web <jasudwadi255@xxx> wrote:
>
> Friends,
>
> There are function like Beta() & Alpha () in MetaStock function formula. Can you please explain, How it is possible to use it in BackTesting ?
>
> regards,
> Shah
>
>
> ----- Forwarded Message ----
> From: web <jasudwadi255@xxx>
> To: equismetastock@xxxxxxxxxxxxxxx
> Sent: Saturday, 11 July, 2009 5:36:12
> Subject: [EquisMetaStock Group] MetaStock Formula - MACD & BEAT & Alpha
>
>
>
>
>
> Hi,
>
>
> Observed certain stocks does not give good results with any of the query and when looked deeper insight came to know they dont follow Stock Index. It means that those are low Beta Stocks.They' re defensive stock. Like, Pharma Sector, FMCG ( Soap, Food Item)
>
> So , when market is crashing ,people buy those stocks and when market is going up people sell it and move to higher growth stocks. It means their Beta & Alpha is reverse then normal stocks.
>
> if anyone has explored that , based on BETA & Alpha values they'll change their strategey. Can you please let me know , how to use the Beta in BackTesting. Beacuse, Beta required some kind of comparision with other index, when we're executing it is only for particular stock . But, if we've to use Beta there should be some different way ..
>
> Any pointers for the same ?
>
> regards,
> Kinjal Shah
------------------------------------
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/equismetastock/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/equismetastock/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:equismetastock-digest@xxxxxxxxxxxxxxx
mailto:equismetastock-fullfeatured@xxxxxxxxxxxxxxx
<*> To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|