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Registered User
Joined: 7/19/2010
Posts: 23
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Using Fundamental Data
I am thinking about upgrading to SFP from SFG to get fundamental data. Before spending more money I have some questions about how fund data is used in RealCode:
1) Fund. data by itself would never be of value because it is only numbers.
2) Historical fund Data is of no value because all charting uses current data for actual placing buy/sell orders w/ a broker.
3) To days date is moved back in time so we can see the chart data to the right of "today";
this well tell us how good our indicators are in predicting the future, we may get rich.
4) Current fund data can be used for history bars because all the data is relative!
5) The requirement is to compare fund data of one symbol to all the rest.
6) To do that comparison one must apply a score to a set of fund data values for each symbol.
7) The score is then normalized across all tickers in a given population to give each a relative value to the other.
8) The fund data items considered for each scoring constitutes a strategy.
9) For each ticker and strategy a score value would be used in the RealCode along with other indicators.
10) Something like the above is the only way I can visualize a meaningful use of fund data
11) I would vary much like a response to my thanking . Thank you in advance.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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You can certainly weight specific Indicators over others and create a composite Indicator. You can also Rank Indicators (although this is far slower than using Values in StockFinder).
That said, the trainers can't give setting, interpretation or investment advice. If you think historical fundamental data is useless, I don't see what useful feedback I could give you even if that wasn't the case (your post reads more like a manifesto than a question).
I'll move this topic to the Stock and Market Talk forum so other traders will be more likely to see it and comment.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 2/5/2006
Posts: 1,148
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in a nutshell, fundamental and stock price have little correlation, in the long term they have a perfect correlation.
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Registered User
Joined: 2/5/2006
Posts: 1,148
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ok, i'll try this again:
in the short term, fundamentals and stock price have little correlation, in the long term, they have a perfect correlation.
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Registered User
Joined: 2/5/2006
Posts: 1,148
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i guess my point is i'd rather used fundamentals for a longterm investment strategy, rather than short term trading.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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1) Fund. data by itself would never be of value because it is only numbers."
That's an interesting philosophy, have you ever seen stocks respond to earnings news?
When you look at it, everything in the stock market is numbers.
The price you pay is a number.
The amount of shares you buy.
The volume/liquidity of the stock you buy.
Any indicator reading.
Numbers are the only thing you have in the market.
Your goal is to try and find ways to make use of the numbers you have.
One thing I can guarantee, if you find numbers useless, they will be.
Thanks
diceman
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Registered User
Joined: 7/19/2010
Posts: 23
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new fund. data is just as good as old for backtesting!
in back testing you must have a date you call "today".
price data to the right is for validation.
current fund. data is ok for back testing because it has the same relationship from on stock
to the other.
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