Relative performance indicator
Author: Ruschem
Creation Date: 1/2/2012 5:00 PM
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Ruschem

#1
In many trading systems Relative performance or ratio is used to drive signals. For example, GLD/GDX ratio can be used to trade GDX of LQD/JNK for market strength. Having two indicators that plot these types of ratios would be very helpful and could save a lot of time charting or programming in WLPro. I suggest adding one indicator that plots ratio of active symbol and and a defined external symbol. The menu for such indicator should also include moving average. Another indicator would plot the ratio of two external symbols and a moving average of the ratio.

I realize that this could be easily done using WLPro code. The point is that having them as standard indicators would a lot simpler.

I apologize if such indicators already exist and I missed them.
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Eugene

#2
Looking for Beta?

A lot simpler I agree, but a lot more work to code it at the same time. The indicator library API provides no means for accessing external symbols for drag-n-dropped indicators. The index symbol for comparison there is, but it's mostly useless in GUI. In code, however, you can specify any Index for Beta.
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Eugene

#3
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Ruschem

#4
Thanks, I will certainly use the script from the link.