Registered User
Joined: 12/2/2004
Posts: 29
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I'd like to create an equal dollar index frmo some stocks I am following. I saw an index created in the live training I went to, but didn't retain how to do it.
The stocks in question range from under a dollar to several dollars in price, and I'd like to assign an equal "investment" to each of 10-20 of them, and have Blocks create an index that i can see updated on a chart each day.
Thanks in advance for help on how to do this. pls. email to (email removed by Moderator)
Thanx
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Can you help me understand exactly how the math would work?
If the stocks are:
ABC - $5
CDE - $10
EFG - $15
HIJ - $20
What would be the value of your index today?
If tomorrow they were:
ABC - $6
CDE - $11
EFG - $16
HIJ - $21
What would be the value of your index tomorrow?
- Craig
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Registered User
Joined: 12/2/2004
Posts: 29
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What I mean by equal investment is equal DOLLAR investment. So, there would be initially 1 share of the $20 stock, 1.33 shares of the $15 stock, 2 shares of the $10 stock, 4 shares of the $5 stock .
I'd like to be able to track on a chart and a data sheet the progress of this index daily, weekly, monthly.
I'll appreciate any guidance on how to create my index. Thankx inadvance.
JfGunter
PS: for the suggestion box, it would be good to post PROMINENTLY on this site, that it only works with Internet Exploiter. I tried with Firefox, but couldn't get it to load properly. Thanks in advance. ...
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Odd. I exclusively use Firefox and do not have an issue with these forums.
I understand the concept but need to get a better idea of how you want it to happen (thus my question above).
As certain stocks rise and fall in price will their weighting change or is the weighting just set at the beginning of the series (some arbitrary date, i guess) and maintained forward?
- Craig
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Registered User
Joined: 1/28/2005
Posts: 6,049
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jfgunter
If I could make a suggestion.
You may want to consider$100 invested in each
stock. (whatever share amount that
would equal a $100 investment)
The stocks investments are then averaged.
The advantage of this is when you see an index value
of 107. You know the basket of stocks is up 7%
If you index is 97 you know they have fallen 3%.
Thanks
diceman
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Registered User
Joined: 12/2/2004
Posts: 29
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great idea. How do I create this index in blocks, diceman? Craig?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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jfgunter,
The method described by diceman is pretty much how the WatchList Average (unweighted) Indicator that is already in the Web Library works. You can select Indicators | WatchList Average (unweighted) to add it to your Charts.
-Bruce
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (Bruce_L) The method described by diceman is pretty much how the WatchList Average (unweighted) Indicator that is already in the Web Library works. You can select Indicators | WatchList Average (unweighted) to add it to your Charts.
Bruce,
I cannot find a discription of the WatchList Average (unweighted) Indicator. Since there is no such thing as an "unweighted" average, I would take it to mean closing prices are weighted equally. If the Indicator is somehow related to the original request or to diceman's suggestion, my understanding of it is incorrect. Please describe how it is calculated.
Of course, the indicator of the original request cannot be constructed until jfgunter says when it is to be rebalanced, if at all. It would probably be of little interest to most unless it is rebalanced on a daily basis.
Thanks,
Jim Murphy
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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bustermu,
The WatchList Average (unweighted) Indicator averages the Percent Changes of all of its components for each Bar and adjusts the previous WatchList Average (unweighted) Indicator by this Average Percent Change (so it is rebalanced each Bar). The WatchList Average starts at 100 on the first Bar of the oldest Component used in the calculations. In most cases this means the WatchList Average starts at 100 at the first Bar of data based on the Length Limit currently being applied in Blocks.
-Bruce
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Registered User
Joined: 1/1/2005
Posts: 2,645
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Bruce,
Thank you. I suppose the "unweighted" comes from the fact that the percent changes are equally weighted.
If that is not what jfgunter wants, it probably should be.
Thanks,
Jim Murphy
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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bustermu,
I didn't name or create the indicator, but I suspect the "unweighted" terminology was originally used internally to differentiate it from the method used to create the Industry Group Averages (which is the same except that the Percent Changes are weighted by the square root of Capitalization).
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 12/2/2004
Posts: 29
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Great discussion. We're talking about the web library for Blocks here? Bruce, do you know precisely how the indicator is referred to? Is it simply "watchlist average"? TIA - jfgunter
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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jfgunter,
It is called 'WatchList Average (unweighted)" and it is one of the Indicators available in Blocks when you select the Indicators button.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 12/2/2004
Posts: 29
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Bruce - When I click on that watchlilst average indicator, up comes the nasdaq 100, not the watchlist which i want to turn into an index.
I have read quite a bit about blocks, been to a training session and have used computers since 1984. So, I'm not a newbie, but somehow I haven't yet "gotten" the drift of how blocks works. please, HELP. TIA. JfGunter
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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If you left-click on the indicator it will bring up its QuickEdit. There you can change the WatchList.
Rule of thumb: to change the parameters of any indicator, start by clicking it and looking at its QuickEdit.
- Craig
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Registered User
Joined: 12/2/2004
Posts: 29
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thanks, Craig. I did what you said, in the pane, the little box now reads, "my positions" but there is not chart of the watchlist average ... there is no chart at all ...
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Double check that you have only one WatchList called My Positions and it is populated with stocks.
- Craig
Here to Help!
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Registered User
Joined: 12/2/2004
Posts: 29
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I've done that. I'm working with data from your canadian datafeed for blocks. I'm starting to think that this indicator can only be calculated on watchlists (and data?) from Telechart. Is this correct?
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Registered User
Joined: 12/2/2004
Posts: 29
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Craig_S: Are you there? Am I right in my previoius post?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Blocks does not need anything from TeleChart to function.
Please share the entire laypout (with the SHARE button) so I can look at it for you.
- Craig
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