Shulou(Shulou.com)05/31 Report--

This article mainly explains "how to realize the relative strength strategy of My language". The explanation content in this article is simple and clear, and it is easy to learn and understand. Please follow the idea of Xiaobian to study and learn "how to realize the relative strength strategy of My language" together.

What is relative intensity?

Relative strength is a momentum investment strategy that compares the performance of stocks, exchange-traded funds (ETFs) or mutual funds to the performance of the overall market. By using specific calculations, investors can identify the strongest performers compared to the overall market to advise on investments. Relative strength assumes that rising asset prices will continue to rise, or at least extend their upward trajectory.

This characteristic is highly probable in any transaction, especially in digital currencies, and by quantifying the parameters of these upswing factors, there will be a reliable and large increase in returns.

Specific relative intensity

Relative strength creates a point of comparison between the performance of a particular trade and that of a selected benchmark (such as a market index) and other similar trades. Relative strength strategy has both entry and exit; investors use this technique to buy strong trading objects as soon as they begin to show weakness, while selling weak trading objects they hold. This investment strategy has its own comparative advantage and can also be applied to more complex strategies such as paired trading.

Using Relative Strength to Guide Investment Decisions

Investors can use comparative advantage to determine the best performer in a selected group of potential investments. This allows the performance of each trade to be compared directly to another trade or to a selected benchmark index, such as a basket of major digital currencies. Traditionally, investors use relative strength to compare stocks to each other or indexes. Investors can only compare mutual funds to each other using relative strength based on the underlying net asset value (NAV) divided by the number of stocks. This is a perfect fit for digital currency.

Relative strength analysis is at its best in markets with strong trends or themes and can identify or indicate when it is the best time to invest in them. But it may be less useful in markets where there are no features (choppy markets). Traditionally, investors can apply relatively strong trades to stocks, mutual funds, ETFs, fixed income, commodity futures, and other market segments. In the digital currency market, more specifically, it can alert investors to the best investments in individual categories, such as whether they should choose smaller currencies among the strong performing ones. Relative strength differs greatly from value investments. While value investing seeks out stocks that have underperformed in the past in the hope that they will outperform in the future, relative strength creates an interest in outperformers and plays a role in their dynamic fluctuations.

Implementing a Relative Strength Strategy on the Inventors Quantification Platform

Strategy Name: Weak Strategy Based on Relatively Strong Price

Data Period: 1H

Support: commodity futures, digital currency, digital currency futures

Main image:

Average, formula: MAN^^MA(C,N);

Secondary image:

no

MAN^^MA(C,N);B_MA:=C>MAN;S_MA:=C0.5;B_K1:=SUM((C-L)*V,N)/SUM((H-L)*V,N)>0.5;CO:=IF(C>O,C-O,0);OC:=IF(C0.5;B_K2:=SUM(CO*V,N)/SUM(ABS(C-O)*V,N)>0.5;B_K1 AND B_K2 AND B_MA AND H>=HHV(H,N),BPK;S_K1 AND S_K2 AND S_MA AND LBKPRICE+STOPLOSS,SP(BKVOL);B_MA AND SKLOW

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.