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Using Market Reflex

Market Reflex leverages the power of local data and computing to deliver calculation results that can't be obtained on the Web.

STOCK RESULTS RANKED FOR PROFITABILITY

Hundreds or thousands of stocks can be quickly backtested to yield historical trades from which profitability can be calculated.  Results are then ranked by profitability so that you can easily see which stocks are most likely to succeed with the strategy being used. 

WHEN TO CONSIDER A TRADE

Some of the stocks will show buy or sell signals for the next trading day.  If a sell signal occurs for a stock already held, a sale should be considered.  Buy signals represent stocks which may be considered for purchase during the next trading day.

THE KEY IS BACKTESTING

Backtesting differs from ordinary stock screening in that it simulates trading with historical values using accepted technical indicators.  It calculates trades and provides results such as profitability and winning trade percentages.  If you know that a strategy has performed well in the past, you will be more confident about relying on it for current trade signals.

MARKET REFLEX VALUES YOUR TIME

Once set up, Market Reflex can run unattended day after day, downloading, updating and monitoring stocks - ready to deliver the information you need when you want it!  Even if you are new to technical analysis, it is easy to use with no formulas to enter or complex programming.

MEASURING PROFITABILITY

Profitability in Market Reflex is the percentage return on the capital utilized while the stock was held.   The capital gain percentage for a trading period does not recognize the duration for which capital was utilized in earning the gain. 

For example, two strategies that both earned $1,000 in a year on $10,000 capital would have the same capital gain percentage of 10%.  One strategy may have held the stock for four months in total, the other for eight months.  This is not equal performance since the strategy holding the stock for four months freed the capital for eight months for other investments versus only four months for the other stock.

The performance of the strategies in this example can be fairly compared by calculating the capital gain on the duration during which the capital is actually utilized.  For the first stock this would yield a return of 30% versus 15% for the second.

STOCK STRATEGY RESULTS

The table below shows the result of applying the four different strategies to each of the 400 stocks of the S&P400 using one year of data.  The 'Average RetOnUt%' is the average profitability as defined above.  The corresponding report which shows the profitability for each stock can be viewed by clicking the strategy name in the table below.  Each strategy required 12 seconds to process 400 stocks on a 2.4GHz processor.  The report was prepared in less than one second.

These results may surprise you.  Stocks can vary widely in their response to a technical strategy and a given strategy is never suitable for all the stocks in a group.  For example, the profitability of the stocks using the MACD1 strategy ranges from -152.3% to 282.9%.  If you were to pick an S&P400 stock with a planned strategy of using the 'standard' values shown in MACD1 to buy and sell, you would want that stock to be in the profitable 200.  Market Reflex can tell you exactly which stocks have delivered a good profit using that strategy and alert you to trade signals for the next trading day.  

 

Once you have selected a stock of interest, you can then refine the strategy for that stock to further improve future trade signals.