Comparing Relative Strength

[MixedHerbs 10]

Hello.

 

I have a pension policy that allows me to allocate money across 361 funds. I want to build a list of those funds in Excel together with price history. I would calculate Relative Strength by comparing each fund to an index made up of all funds in the list.

 

My intention is to sort the list so that the funds with the highest strength appear at the top.

 

My question is, how do you compare Relative Strength over time? Comparing it on a single day is easy, but choosing a fund that has the higher strength over the last three months (say) is trickier.

 

Peter.

[japantrader 10]

Hi,

This is exactly what I have been doing. I copy the latest fund prices into Excel weekly, but then I actually import those into Amibroker for checking. This let's me also see the charts and gives a much better feel than just looking at the figures. I don't have a system as such, but I rank then by 3 weeks moving average change, and also look at the 1 week change, and maximum recent losing and gaining weeks. Works pretty well for keeping me in the upper performing funds so far.

[max8ion 10]

Yeah that can be a way out - really, try it out!

[MightyMouse 12]

Hello.

 

I have a pension policy that allows me to allocate money across 361 funds. I want to build a list of those funds in Excel together with price history. I would calculate Relative Strength by comparing each fund to an index made up of all funds in the list.

 

My intention is to sort the list so that the funds with the highest strength appear at the top.

 

My question is, how do you compare Relative Strength over time? Comparing it on a single day is easy, but choosing a fund that has the higher strength over the last three months (say) is trickier.

 

Peter.

 

Peter,

 

I do not know anything about you. But, if your pension policy is to be used for retirement, then you are choosing the absolute worst strategy you can choose to allocate the money you need to have later in life when you no longer wish to work. You are infinitely better off allocating your pension assets in a manner consistent with your risk profile and making money over time instead of trying to time the market using a lagging indicator. Keep your retirement money sacred. The average mutual fund buyer losses money in a mutual fund because they buy at the wrong time and sell at the wrong time. Your strategy puts you firmly into this group.

 

If you stand to inherit a boat load of cash or have a job or live in a country where you will receive a guaranteed payment at retirement that will be more than enough, then i suppose you could risk losing the bulk of your pension account and it won't make a difference to you.

 

MM

[peterjerome 10]

Mixed,

 

i use this techinque in excel. do you have a data feed? my data feed is eSignal.

it supports DDE. this allows reading data (stock prices) directly in excel.

if you have a data feed and are calculating the relative strength, you only need to add a row that display's (current) today prices.

 

here is the eSignal support:

 

=winros|LAST!nov

 

gets today's value for NOV

(other prices available, eg change, high, low,)

peter.

[bampairtrading 10]

MightyMouse, - sector relative strength is a well researched anomaly that's documented to lead towards abnormal. Check google scholar and elsewhere for confirmation.

[MightyMouse 12]

MightyMouse, - sector relative strength is a well researched anomaly that's documented to lead towards abnormal. Check google scholar and elsewhere for confirmation.

 

Friend, you may gamble your retirement money any way you wish. Go for it and I will hope a long with you that I am wrong in this instance.

[efficiency 10]

Hello.

 

I have a pension policy that allows me to allocate money across 361 funds. I want to build a list of those funds in Excel together with price history. I would calculate Relative Strength by comparing each fund to an index made up of all funds in the list.

 

My intention is to sort the list so that the funds with the highest strength appear at the top.

 

My question is, how do you compare Relative Strength over time? Comparing it on a single day is easy, but choosing a fund that has the higher strength over the last three months (say) is trickier.

 

Peter.

 

Ending Fund Price - Beginning Fund Price

__________________________________

 

Ending Index Price - Beginning Index Price

 

 

 

The higher the ratio the higher the RS.