Has anyone found a creative way to construct some type of weighted Rate of Change?
Where blended RoC is generated with RoC 3m given more weight than RoC 6m and RoC 12m. Then the really hard part: rank on that value.
Essentially, something to roughly replicate an IBD style of weighted RS ranking. Which I find very useful.
You can build a weighted ranking using excel, either manually using formulas and sorts or using VB.
Do you know the formula for the IBD RS ranking?
Thank you for the reply. I could use Excel, but I invest in 3 separate country exchanges (actually 4) and the work outside of Stockopedia would simply be too much to perform, every day.
Commonly the IBD "RS" formula is given as:
((((C - C63) / C63) * .4) +
(((C - C126) / C126) * .2) +
(((C - C189) / C189) * .2) +
(((C - C252) / C252) * .2)) * 100
It calculates that figure for each stock, then stocks are ranked on that figure.
It is not actually RS at all, it is a weighted Rate of Change. With the shorter period (63 days) given 40% weight and the the remaining longer RoC periods given equal 20% weight.
Thanks for the formula.
Daily it would be a great deal of work without automation but weekly might be doable. If you're an IBD O'Neill follower he tended to use weekly charts.
For more frequent calculations you could look at using a data source such as Bodhi and automating it via excel vb, depending on your coding skills.
My VB skills are now very old :)
I do appreciate you input.
I don't really want to replicate the calculation. More so, just come up with some creative way of using the existing screener functionality such that I can introduce some bias or "weighting" for the more recent RoC, but without entirely discarding longer RoC.
My issue is that stocks with deep and steep V recoveries have near zero 6-12 month RoC, and very strong 3 month.
If the Stockopedia Screener allowed the OR operator, I may have been able to fudge something.
