Stocks: Dashboard [invincible3]Stocks Dashboard is a professional all-in-one stock analysis dashboard built directly for PulseWire charts. It is designed to help investors, traders, and analysts quickly evaluate a stock using a combination of fundamental strength, valuation, financial health, income quality, shareholder return, and price momentum.
The indicator displays a clean table-based dashboard on the chart and converts raw financial and technical data into easy-to-read category scores. Instead of checking many separate financial ratios manually, this dashboard organizes the most important stock metrics into structured sections and gives a clear visual overview of the company’s current condition.
The dashboard includes composite scoring for Quality, Value, Growth, Financial Health, Income / Shareholder Return, and Momentum. Each category is scored from 0 to 100 and classified using simple rating labels such as Elite, Strong, Fair, Weak, or Risk. This allows users to quickly compare the strength and weakness of a stock across multiple dimensions.
The Valuation section includes important valuation metrics such as P/E TTM, Forward P/E, PEG Ratio, P/S, P/B, EV/EBITDA, EV/Sales, Earnings Yield, Operating Earnings Yield, Graham Price, Graham Number Upside, EPS TTM, and BVPS. These metrics help identify whether a stock may be expensive, fairly valued, or potentially undervalued.
The Quality section focuses on profitability and business efficiency. It includes ROE, Asset Return / ROA, ROIC, Piotroski F-Score, Gross Margin, Operating Margin, Net Margin, EBITDA Margin, and Free Cash Flow Margin. These values help evaluate how efficiently the company generates profits from its assets, equity, capital, revenue, and operations.
The Growth section tracks the company’s expansion profile using Revenue Growth, EPS Growth, and Sustainable Growth Rate. These metrics help users understand whether the business is improving, stagnating, or losing earnings momentum.
The Financial Health section evaluates balance sheet strength and risk. It includes Debt / Equity, Debt / Assets, Debt / EBITDA, Net Debt / EBITDA, Cash / Debt, Current Ratio, Quick Ratio, Interest Coverage, Altman Z-Score, Operating Cash Flow, and Free Cash Flow. This section is useful for identifying companies with strong liquidity, manageable debt, and lower financial risk.
The Income / Return section is designed for dividend and shareholder-return analysis. It includes Dividend Yield, Payout Ratio, Free Cash Flow Yield, DPS, Buyback Yield, and Buyback Ratio. These metrics help investors evaluate whether a company is returning value to shareholders through dividends, buybacks, and cash generation.
The Momentum section adds a technical view of the stock. It includes RSI 14, 1-month return, 3-month return, 6-month return, 12-month return, 6-month relative strength versus a selected benchmark, 12-month relative strength versus a selected benchmark, volatility, and moving-average trend using the 20, 50, and 200 daily moving averages.
The Snapshot section provides a quick summary of the selected stock, including current price, market capitalization, enterprise value, 52-week position, and distance from the 52-week high. This gives users a fast overview of where the stock is trading relative to its recent range.
Users can customize the stock symbol, benchmark/index symbol, financial period, table position, text size, color theme, and visible sections. The dashboard supports multiple professional themes, including Dark Terminal, Light Terminal, Emerald Pro, Royal Blue, and Amber Desk. Users can also enable or disable colored score backgrounds, score bars, alternating rows, colorful section headers, and directional symbols.
This indicator is useful for:
* Long-term stock analysis
* Fundamental screening
* Valuation comparison
* Dividend and shareholder-return review
* Financial health analysis
* Momentum confirmation
* Relative strength comparison against an index or benchmark
* Building a structured watchlist review process
The goal of this dashboard is to provide a fast, organized, and visually professional stock overview without requiring users to switch between multiple financial websites or separate indicators. It combines fundamental data and technical momentum into one compact chart-based table, making it easier to identify strong, weak, undervalued, overvalued, or financially risky stocks.
Note: The dashboard uses PulseWire’s available financial data. Some metrics may appear unavailable depending on the selected symbol, exchange, market, or financial data coverage. This tool is intended for analysis and research purposes only and should not be considered financial advice.
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Trade Strategy Calculator [WillyAlgoTrader]📊 Trade Strategy Calculator is the first comprehensive mathematical strategy calculator built entirely inside PulseWire — a 4-panel dashboard that computes position sizing, risk analysis, deposit growth projection, and Kelly Criterion optimization in real time, directly on your chart. No spreadsheets, no external tools, no switching tabs. Every number you need before entering a trade — position size, stop loss level, take-profit targets, commission impact, expected value, probability of ruin, compound growth forecast, and optimal bet sizing — calculated from your strategy parameters and displayed in a single organized view.
This tool is useful for every trader regardless of market, instrument, or timeframe — stocks, forex, crypto, futures, indices, commodities. Whether you trade scalping on 1-minute charts or swing on daily, whether you use 1x spot or 125x futures leverage — the mathematics of position sizing, risk management, and bankroll growth are universal. This calculator puts those mathematics at your fingertips.
🧩 WHY ALL FOUR PANELS WORK TOGETHER
Most traders calculate position size in isolation — they know how much to risk but don't connect it to their long-term growth trajectory. They know their win rate but don't know if it's mathematically profitable after commissions. They have a "feel" for their risk level but haven't computed what happens after 7 consecutive losses.
This calculator connects four mathematical dimensions into one coherent picture:
🎯 TRADE panel answers: "How large should this specific trade be, and what are the exact entry/SL/TP prices?"
⚠️ RISK panel answers: "What happens when things go wrong — how many losses until I hit my daily limit, my max drawdown, and what's my expected value per trade?"
📈 GROWTH panel answers: "If I trade consistently with these parameters, where will my deposit be in 30/90/365 days — and how long to reach my target?"
📐 KELLY panel answers: "Am I betting the mathematically optimal amount — or am I over-betting (risking ruin) or under-betting (leaving growth on the table)?"
A trader who only uses the TRADE panel knows their position size but not whether their strategy has positive expected value. A trader who only uses KELLY knows the optimal bet size but not the specific position for their current trade. A trader who only uses GROWTH knows the projection but not whether the underlying math is sound. All four together give you the complete picture: "Is my strategy profitable? Am I sizing correctly? What's the worst case? And where does this lead?"
🔍 WHAT MAKES IT ORIGINAL
There is no other indicator on PulseWire that combines all four of these mathematical models — position sizing, risk stress testing, compound growth simulation, and Kelly Criterion — into a single, real-time, interactive dashboard. Each panel alone would be a useful tool. Together, they create something that doesn't exist elsewhere on the platform.
🎯 PANEL 1 — TRADE (Position Sizing + Targets)
This panel calculates the exact position size for your trade based on your deposit, risk percentage, stop loss distance, leverage, and commissions.
Core formula:
positionSize = riskAmount / (slDistance% + commissionBothSides)
Where:
— riskAmount = deposit × riskPerTrade%
— slDistance% = slPercent × (1 + slippage%) — slippage is added to the stop distance for realistic sizing
— commissionBothSides = commission% × 2 (open + close)
This formula ensures that if your stop loss is hit, you lose exactly riskAmount — not more, not less — after accounting for both slippage and round-trip commission.
What you see:
— Direction (Long / Short)
— Entry Price (manual or auto from chart)
— Stop Loss price (calculated from entry ± SL%)
— 💰 Position Size in USD — the headline number
— Margin Required (if leverage > 1)
— Quantity (units/coins/shares)
— 🔴 Risk (loss) in USD and % of deposit
— 🟢 Profit at TP — in USD, % of deposit, and net R:R after commission
— TP Price level
— Commission cost in USD
— Liquidation price (for leveraged positions)
— ⚠️ Insufficient margin warning (if position exceeds deposit)
Multi Take-Profit mode:
When enabled, the position is split across 2 or 3 TP levels with configurable volume allocation:
— TP1 at R:R 1.0 with 50% of position → locks partial profit early
— TP2 at R:R 2.0 with 30% → captures the main move
— TP3 at R:R 3.0 with 20% (if 3 TPs) → runner for extended moves
Each TP shows: profit in USD, target price. The panel also computes:
— Total blended profit across all TPs
— Net R:R (blended, after commissions)
— Breakeven price after TP1 — the price where your remaining position becomes zero-loss after banking TP1 profit. This is critical: after TP1, you move your stop to this price — the trade can no longer lose money.
Example:
Deposit: $10,000. Risk: 1% ($100). SL: 2%. Commission: 0.04%.
Position = $100 / (0.02 + 0.0008) = $4,808.
If BTC at $100,000 → SL at $98,000, TP1 at $102,000.
If stopped out → you lose exactly $100 (1% of deposit).
If TP1 hit → you gain ~$96 (after commission).
⚠️ PANEL 2 — RISK (Stress Testing + Expected Value)
This panel answers: "What happens when I have a losing streak, and is my strategy mathematically profitable?"
Daily risk limit:
maxLosingDaily = floor(dailyRiskLimit% / riskPerTrade%)
Example: 3% daily limit, 1% per trade → you stop after 3 losses in a day.
Max drawdown limit:
maxLosingTotal = floor(maxDrawdown% / riskPerTrade%)
Example: 20% max DD, 1% per trade → 20 consecutive losses to hit max DD.
Stress test — losing streaks:
The panel computes what happens after 5, 7, and 10 consecutive losses:
— depositAfterN = deposit × (1 − riskPerTrade%)^N
— drawdownAfterN = (1 − (1 − riskPerTrade%)^N) × 100%
— probabilityOfN = (1 − winrate%)^N × 100%
Example: $10,000 deposit, 1% risk, 55% winrate:
— 5 losses: −4.9% DD ($9,510), probability 1.85%
— 7 losses: −6.8% DD ($9,321), probability 0.37%
— 10 losses: −9.6% DD ($9,044), probability 0.03%
This tells you: a 5-loss streak WILL happen (1.85% probability over hundreds of trades). A 10-loss streak is extremely rare (0.03%). Your risk% must be sized so that even the realistic worst case doesn't blow your account.
Expected Value (EV):
EV per trade = winrate × riskAmount × avgR:R − (1 − winrate) × riskAmount − commission
This is the single most important number in trading. If EV > 0, your strategy makes money over time. If EV < 0, no amount of position sizing saves you.
The panel shows:
— 📈 EV per trade in USD (highlighted — this is the headline metric)
— EV per 100 trades
— Break-even winrate WITH commission — the minimum winrate needed to be profitable at your R:R, accounting for commission drag
— Your actual WR and R:R for comparison
Break-even winrate formula (with commission):
beWinrate = (1 + commissionCost / riskAmount) / (avgR:R + 1)
This is more accurate than the standard 1/(R:R+1) because it accounts for commission reducing your net edge.
📈 PANEL 3 — GROWTH (Deposit Projection + Scenarios)
This is the unique deposit growth simulator — it projects where your deposit will be after N days of consistent trading, using either compound (reinvest profits) or simple (fixed risk from initial deposit) growth.
Compound growth formula:
EV per trade as % = winrate × (risk% × R:R) − (1 − winrate) × risk%
totalTrades = tradesPerDay × projectionDays
finalDeposit = deposit × (1 + evPerTrade%)^totalTrades
Simple growth formula:
finalDeposit = deposit + deposit × evPerTrade% × totalTrades
The difference is massive. Compound growth reinvests profits — each winning trade increases the base for the next trade. Simple growth always risks a fixed amount from the initial deposit.
Example — compound vs simple:
$1,000 deposit, 55% WR, 1:2 R:R, 1% risk, 3 trades/day, 30 days:
— Simple: $1,000 + $1,000 × 0.65% × 90 = $1,585
— Compound: $1,000 × (1.0065)^90 = $1,795
Over 90 days: $1,585 vs $1,795. Over 365 days the gap becomes enormous. This is why compound growth (reinvesting profits) is the key to deposit acceleration.
Three scenarios:
— 🟢 Optimistic: your winrate + 10% (what happens if you're having a great month)
— 🟡 Realistic: your actual parameters
— 🔴 Pessimistic: your winrate − 10% (what happens during a drawdown period)
This gives you a range, not a single number. If even the pessimistic scenario is positive, your strategy is robust.
Goal milestones:
— Days to 2× deposit (double your money)
— Days to 3× deposit
— Days to custom target ($5,000, $10,000, etc.)
Formula: daysToTarget = log(target / deposit) / (log(1 + evPerTrade%) × tradesPerDay)
Risk metrics:
— Max estimated drawdown: based on expected worst losing streak × risk%
— Ruin probability: the probability of losing your entire bankroll at your current risk level
Ruin probability formula:
edge = winrate × R:R − (1 − winrate)
bankrollUnits = floor(100 / risk%)
ruinProb = ((1 − winrate) / (winrate × R:R))^bankrollUnits
If edge ≤ 0, ruin probability is effectively 100%. If edge > 0, ruin probability decreases exponentially with more bankroll units (lower risk%).
Presets for quick scenarios:
— Beginner: 45% WR, 1:2 R:R, 1% risk — conservative starting point
— Moderate: 55% WR, 1:2 R:R, 2% risk — typical intermediate trader
— Aggressive: 50% WR, 1:3 R:R, 3% risk — higher risk, needs discipline
— Custom: uses your exact My Strategy values
📐 PANEL 4 — KELLY CRITERION (Optimal Bet Sizing)
The Kelly Criterion is the mathematically optimal percentage of your bankroll to risk on each bet, given your edge. It maximizes the long-term growth rate of your account.
Kelly formula:
edge = winrate × avgR:R − (1 − winrate)
kellyPercent = edge / avgR:R
If edge ≤ 0 → Kelly = 0% (no edge, don't trade). If edge > 0 → Kelly tells you the maximum you should risk.
What the panel shows:
— Your winrate and avg R:R
— Break-even winrate (with commission)
— 📐 Edge per $1 risked — your mathematical advantage. If +$0.15, every $1 risked returns $1.15 on average.
— Full Kelly % — the theoretical maximum. Most traders should NOT use this — it's too aggressive.
— Half Kelly ✦ — the recommended practical value. Reduces variance by ~75% while giving up only ~25% of growth.
— Quarter Kelly — ultra-conservative, minimal variance.
— Your current risk % — so you can compare
— Status: 🟢 Optimal (between half and full Kelly), 🟡 Conservative (below half), 🔴 Over-bet (above full Kelly), 🚨 >2× Kelly (danger zone)
Growth rate comparison:
— Growth rate at Kelly %: the compound growth rate per trade at the optimal bet size
— Growth rate at your %: your actual compound growth rate per trade
Formula: growthRate = winrate × log(1 + risk% × R:R) + (1 − winrate) × log(1 − risk%)
If your rate is close to the Kelly rate, you're near-optimal. If it's much lower, you're leaving growth on the table. If it's negative (possible when over-betting!), you're actually losing money despite having a positive edge — the over-betting destroys the compounding.
Why this matters:
A trader with a 55% WR and 1:2 R:R has an edge. Kelly says risk ~4.6%. But if that trader risks 10% per trade (2× Kelly), their actual growth rate can become negative — they go broke despite having a winning strategy. This is the most counterintuitive result in trading mathematics: over-betting a winning system turns it into a losing system . The Kelly panel prevents this.
📖 HOW TO USE — STEP BY STEP
Step 1 — Enter your strategy parameters (My Strategy section):
— Deposit: your actual account balance in USD
— Risk per Trade: how much you risk per trade (start with 1% if unsure)
— Winrate: your historical win rate (be honest — check your journal)
— Average R:R: your average reward-to-risk on winning trades
— Trades per Day: how many trades you typically take
— Leverage: 1 for spot, or your futures leverage
— Commission: your exchange fee per side (Binance Futures taker: 0.04%)
Step 2 — Set up your current trade (Trade Setup section):
— Direction: Long or Short
— Stop Loss %: how far your SL is from entry
— Risk:Reward: your target R:R for this trade
— Entry Price: manual or auto from chart
Step 3 — Read the TRADE panel:
— The 💰 Position Size number is your order size in USD
— If using leverage, check Margin Required doesn't exceed your deposit
— Note the SL and TP prices — set these in your exchange
Step 4 — Check the RISK panel:
— Is your EV per trade positive? If not, your strategy loses money long-term
— Is your winrate above the break-even? If not, improve your R:R
— Check the stress test: can your deposit survive 7 losses in a row?
— If the risk badge shows 🚨 DANGER, reduce your risk% or leverage
Step 5 — Review the GROWTH panel:
— The projected deposit shows where you'll be in 30 days
— Check the pessimistic scenario — is it still above your starting deposit?
— Note the days to 2× — this is your compound growth timeline
— If ruin probability > 5%, your risk is too high
Step 6 — Optimize with KELLY panel:
— Compare your risk% to Half Kelly — this is the recommended level
— If Status shows 🔴 Over-bet, reduce your risk%
— If Status shows 🟡 Conservative, you could increase (but don't have to)
— Check Growth Rate at Your % — is it positive? Is it close to Kelly's rate?
🎯 PRACTICAL EXAMPLES
Example 1 — Conservative Spot Trader:
Deposit $5,000, Risk 1%, WR 55%, R:R 1:2, 2 trades/day, No leverage, Commission 0.1%
— Position: ~$2,500 per trade. Risk: $50.
— EV: +$5.60 per trade. Positive — strategy is profitable.
— 30-day projection (compound): $5,000 → $5,705 (+14.1%)
— Days to double: ~98 days
— Kelly: 4.6%. Your 1% = conservative. Status: 🟡
Example 2 — Crypto Futures Scalper:
Deposit $1,000, Risk 2%, WR 50%, R:R 1:3, 5 trades/day, Leverage 10x, Commission 0.04%
— Position: ~$10,000 per trade. Margin: $1,000. Risk: $20.
— EV: +$10.40 per trade. Strong positive edge.
— 30-day projection (compound): $1,000 → $4,680 (+368%)
— Days to double: ~14 days
— Kelly: 8.3%. Your 2% = well below Kelly. Room to grow.
— ⚠️ But 7-loss streak probability: 0.78%. DD: −13.2%. Manageable.
Example 3 — Why Over-Betting Kills:
Same as Example 2, but Risk 15% (almost 2× Kelly):
— EV per trade still positive (+$78)
— BUT growth rate per trade: NEGATIVE (−0.3%)
— 30-day projection: $1,000 → $620 (−38%)
— Kelly Status: 🚨 >2× Kelly
— Despite winning 50% with 1:3 R:R, you LOSE money because over-betting destroys compounding.
⚙️ KEY SETTINGS REFERENCE
⚙️ My Strategy:
— Deposit : account balance in USD
— Risk per Trade (default 1%): % of deposit risked per trade
— Winrate (default 55%): historical win rate
— Average R:R (default 2.0): average reward-to-risk on wins
— Trades per Day (default 3): daily trade count
— Leverage (default 1): 1 = spot, >1 = futures
— Commission (default 0.04%): exchange fee per side
🎯 Trade Setup:
— Direction : Long / Short
— Stop Loss % (default 1%): SL distance from entry
— Risk:Reward (default 2.0): target R:R
— Slippage (default 0.05%): expected execution slippage
— Entry Price : Manual or Auto (chart price)
🎯 Multi Take-Profit:
— Enable Multi TP (default Off): split into 2–3 targets
— R:R for TP1/TP2/TP3 (default 1.0/2.0/3.0)
— Volume allocation (default 50%/30%/20%)
📈 Growth Projection:
— Preset : Beginner / Moderate / Aggressive / Custom
— Projection Period (default 30 days)
— Compound (default On): reinvest profits
— Target Deposit (default 0 = off): goal amount
— Max Daily Risk (default 3%): daily loss limit
— Max Drawdown (default 20%): total DD limit
🎨 Visual:
— Font Size: Tiny / Small / Normal / Large
— Auto / Dark / Light theme
⚠️ IMPORTANT NOTES
— 📊 This is a calculator, not a signal generator. It does not produce buy/sell signals. It computes the mathematical framework for your trading decisions — position sizing, risk limits, growth projections, and optimal bet sizing. The math is universal and applies to any strategy.
— 📐 All calculations are deterministic — they depend only on your input parameters, not on price data. The dashboard updates in real-time when you change any input.
— ⚖️ The growth projection assumes consistent strategy parameters over the projection period. Real trading involves varying win rates, R:R ratios, and market conditions. The three scenarios (optimistic/realistic/pessimistic) partially address this by showing a range.
— 📏 The Kelly Criterion assumes known, fixed probabilities . In practice, your winrate and R:R fluctuate. This is why Half Kelly (not Full Kelly) is recommended — it accounts for parameter uncertainty.
— 💰 Commission is calculated as round-trip (both sides) and deducted from both profit calculations and expected value. This provides realistic net returns.
— 📊 The break-even winrate calculation includes commission drag — it's higher than the simplified 1/(R:R+1) formula because commission erodes your edge.
— 🔄 The compound growth formula uses logarithmic overflow protection — if the projected growth exceeds exp(23) ≈ 10 billion ×, it displays "∞" instead of crashing.
— 🛠️ Works on any chart, any instrument, any timeframe . The calculator is price-independent — it uses your manual inputs. "Auto" entry price mode uses the current chart close for convenience.
— 🌐 Useful for all markets : stocks (set leverage = 1, commission = 0.1%), forex (adjust for pip-based SL), crypto spot (leverage = 1), crypto futures (set your leverage), indices, commodities. Indicator
Indicator
PE Ratio Intrinsic ValueThe "Median PE Ratio and Intrinsic Value" indicator is designed for traders and investors who wish to evaluate the intrinsic value of a stock based on a comparative analysis of Price-to-Earnings (PE) ratios across multiple stocks. This tool not only provides insights into whether a stock is undervalued or overvalued but also allows you to visualize the intrinsic value directly on the chart.
Comparison Across Multiple Stocks:
This indicator calculates the PE ratio for up to five different stocks, allowing you to compare the target stock's valuation against four other same sector companies. By default, the stocks included are Apple (AAPL), Google (GOOG), Microsoft (MSFT), and Amazon (AMZN), but you can customize these symbols to fit your analysis needs.
Dynamic PE Ratio Calculation:
The indicator calculates the PE ratio for each stock by dividing the current price by the earnings per share (EPS). The EPS data is retrieved based on the selected period, which can be one of the following:
FY (Fiscal Year)
FH (Fiscal Half-Year)
FQ (Fiscal Quarter)
TTM (Trailing Twelve Months)
You can easily switch between these periods using the provided input options, enabling a more customized analysis based on your preferred financial timeframe.
Once the PE ratios for the selected stocks are computed, the indicator calculates the average PE ratio. The average value is a robust measure that reduces the influence of outliers and provides a balanced view of market valuation.
The intrinsic value of the stock on the chart is calculated by multiplying its EPS by the median PE ratio of the selected stocks. This gives you an estimate of what the stock should be worth if it were to trade at a fair valuation relative to the chosen peers.
The intrinsic value is plotted directly on the price chart as a step line with breaks. This step line style is chosen to represent changes in intrinsic value clearly, with breaks indicating periods where the calculated value is not valid (e.g., negative intrinsic value). Only positive intrinsic values are displayed, helping you focus on meaningful data.
You can easily customize the stocks analyzed by entering the ticker symbols of your choice. Additionally, the indicator allows you to adjust the timeframe for EPS data, giving you flexibility depending on whether you are focused on long-term trends or shorter financial periods.
How to Use:
Compare the current stock price to the plotted intrinsic value. If the current price is below the intrinsic value, the stock may be undervalued. Conversely, if the price is above the intrinsic value, the stock might be overvalued. By comparing your stock against major market players, you can gauge whether it's trading at a premium or discount relative to other key companies in the sector. Use the period selection (FY, FQ, TTM) to adapt your analysis to different market conditions or earnings cycles, giving you more control over your valuation assessment.
Ideal For:
Long-term Investors looking to assess the intrinsic value of a stock based on comparative analysis.
Fundamental Analysts who want to combine multiple stocks' PE ratios to estimate a fair valuation.
Value Investors interested in finding undervalued opportunities by comparing the market price to intrinsic value. Indicator
Financial Ratios Fundamental StrategyWhat are financial ratios?
Financial ratios are basic calculations using quantitative data from a company’s financial statements. They are used to get insights and important information on the company’s performance, profitability, and financial health.
Common financial ratios come from a company’s balance sheet, income statement, and cash flow statement.
Businesses use financial ratios to determine liquidity, debt concentration, growth, profitability, and market value.
The common financial ratios every business should track are
1) liquidity ratios
2) leverage ratios
3)efficiency ratio
4) profitability ratios
5) market value ratios.
Initially I had a big list of 20 different ratios for testing, but in the end I decided to stick for the strategy with these ones :
Current ratio: Current Assets / Current Liabilities
The current ratio measures how a business’s current assets, such as cash, cash equivalents, accounts receivable, and inventories, are used to settle current liabilities such as accounts payable.
Interest coverage ratio: EBIT / Interest expenses
Companies generally pay interest on corporate debt. The interest coverage ratio shows if a company’s revenue after operating expenses can cover interest liabilities.
Payables turnover ratio: Cost of Goods sold (or net credit purchases) / Average Accounts Payable
The payables turnover ratio calculates how quickly a business pays its suppliers and creditors.
Gross margin: Gross profit / Net sales
The gross margin ratio measures how much profit a business makes after the cost of goods and services compared to net sales.
With this data, I have created the long and long exit strategy:
For long, if any of the 4 listed ratios,such as current ratio or interest coverage ratio or payable turn ratio or gross margin ratio is ascending after a quarter, its a potential long entry.
For example in january the gross margin ratio is at 10% and in april is at 15%, this is an increase from a quarter to another, so it will get a long entry trigger.
The same could happen if any of the 4 listed ratios follow the ascending condition since they are all treated equally as important
For exit, if any of the 4 listed ratios are descending after a quarter, such as current ratio or interest coverage ratio or payable turn ratio or gross margin ratio is descending after a quarter, its a potential long exit.
For example in april we entered a long trade, and in july data from gross margin comes as 12% .
In this case it fell down from 15% to 12%, triggering an exit for our trade.
However there is a special case with this strategy, in order to make it more re active and make use of the compound effect:
So lets say on july 1 when the data came in, the gross margin data came descending (indicating an exit for the long trade), however at the same the interest coverage ratio came as positive, or any of the other 3 left ratios left . In that case the next day after the trade closed, it will enter a new long position and wait again until a new quarter data for the financial is being published.
Regarding the guidelines of pulsewire, they recommend to have more than 100 trades.
With this type of strategy, using Daily timeframe and data from financials coming each quarter(4 times a year), we only have the financial data available since 2016, so that makes 28 quarters of data, making a maximum potential of 28 trades.
This can however be "bypassed" to check the integrity of the strategy and its edge, by taking for example multiple stocks and test them in a row, for example, appl, msft, goog, brk and so on, and you can see the correlation between them all.
At the same time I have to say that this strategy is more as an educational one since it miss a risk management and other additional filters to make it more adapted for real live trading, and instead serves as a guiding tool for those that want to make use of fundamentals in their trades
If you have any questions, please let me know ! Strategy
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Statistical and Financial MetricsGood morning traders!
This time I want to share with you a little script that, thanks to the use of arrays, allows you to have interesting statistical and financial insights taken from the symbol on chart and compared to those of another symbol you desire (in this case the metrics taken from the perpetual future ETHUSDT are compared to those taken from the perpetual future BTCUSDT, used as a proxy for the direction of cryptocurrency market)
By enabling "prevent repainting", the data retrieved from the compared symbol won't be on real time but they will static since they will belong to the previous closed candle
Here are the metrics you can have by storing data from a variable period of candles (by default 51):
✓ Variance (of the symbol on chart in GREEN; of the compared symbol in WHITE)
✓ Standard Deviation (of the symbol on chart in OLIVE; of the compared symbol in SILVER)
✓ Yelds (of the symbol on chart in LIME; of the compared symbol in GRAY) → yelds are referred to the previous close, so they would be calculated as the the difference between the current close and the previous one all divided by the previous close
✓ Covariance of the two datasets (in BLUE)
✓ Correlation coefficient of the two datasets (in AQUA)
✓ β (in RED) → this insight is calculated in three alternative ways for educational purpose (don't worry, the output would be the same).
WHAT IS BETA (β)?
The BETA of an asset can be interpretated as the representation (in relative terms) of the systematic risk of an asset: in other terms, it allows you to understand how big is the risk (not eliminable with portfolio diversification) of an asset based on the volatilty of its yelds.
We say that this representation is made in relative terms since it is expressed according to the market portfolio: this portfolio is hypothetically the portfolio which maximizes the diversification effects in order to kill all the specific risk of that portfolio; in this way the standard deviation calculated from the yelds of this portfolio will represent just the not-eliminable risk (the systematic risk), without including the eliminable risk (the specific risk).
The BETA of an asset is calculated as the volatilty of this asset around the volatilty of the market portfolio: being more precise, it is the covariance between the yelds of the current asset and those of the market portfolio all divided by the variance of the yelds of market portfolio.
Covariance is calculated as the product between correlation coefficient, standard deviation of the first dataset and standard deviation of the second asset.
So, as the correlation coefficient and the standard deviation of the yelds of our asset increase (it means that the yelds of our asset are very similiar to those of th market portfolio in terms of sign and intensity and that the volatility of these yelds is quite high), the value of BETA increases as well
According to the Capital Asset Pricing Model (CAPM) promoted by William Sharpe (the guy of the "Sharpe Ratio") and Harry Markowitz, in efficient markets the yeld of an asset can be calculated as the sum between the risk-free interest rate and the risk premium. The risk premium of the specific asset would be the risk premium of the market portfolio multiplied with the value of beta. It is simple: if the volatility of the yelds of an asset around the yelds of market protfolio are particularly high, investors would ask for a higher risk premium that would be translated in a higher yeld.
In this way the expected yeld of an asset would be calculated from the linear expression of the "Security Market Line": r_i = r_f + β*(r_m-r_f)
where:
r_i = expected yeld of the asset
r_f = risk free interest rate
β = beta
r_m = yeld of market portfolio
I know that considering Bitcoin as a proxy of the market portfolio involved in the calculation of Beta would be an inaccuracy since it doesn't have the property of maximum diversification (since it is a single asset), but there's no doubt that it's tying the prices of altcoins (upward and downward) thanks to the relevance of its dominance in the capitalization of cryptocurrency market. So, in the lack of a good index of cryptocurrencies (as the FTSE MIB for the italian stock market), and as long the dominance of Bitcoin will persist with this intensity, we can use Bitcoin as a proxy of the market portfolio
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