Market assessment is responsible for the production of signals (technical analysis). Signals are generated market and technique specific. The rightmost column embodies current instrument characteristic (fundamental analysis). Thus market assessment builds quintessence of technical and fundamental analysis.
The technical chart illustrates market rating along time. The chart can be scaled up. In most index markets the index graph is displayed orange. Signals are marked with an L (long) or an S (short) on the index curve. If an index exists, you can see the evidence that Share-o-matic works pro-cyclically whereas most other characteristic numbers attend the trend iso-cyclically. This results from the different RSI distances and buy and sell lines, they are entirely in a different way from common practice. For best practice techniques RSI parameters are determined by Share-o-matic analysis specific to each market.
Beneath the assessment table the up to now transactions are displayed. Within there a virtual available starting asset of 10.000,00 monetary units is projected. At any buy signal the maximum possible asset is invested. Therefore we usually have 'twisted' lots. When the last transaction is assessed the last available price date is used as the evaluation sell value, because the transaction is not yet closed. Using the navigation bar at the top you can get informations for single price dates for verifying signals or querying the assessment for securities you are interested in.
Via Ranking market evaluation relative to different techniques can be displayed, in particular you can get assistance, which technique should be used for decisions in certain markets. The list can be sorted descending by asset or yield. We recommend sorting by yield, because this excludes dependency from date of first transaction in the market at asset development. Selections for single technique or best practice containment are possible. When signals appear, it is advisable to throw a dreamy glance at adjacent markets. Therefore rows, which contain adjusted market or neighboring markets are highlighted (unfortunately too screaming after my fancy). Background colors must be interpreted as follows:
| ||adjusted market|| Which is the best technique for the market at present?|
| ||parent market|| Does the potentially more comprehensive market above perform better?|
| || sibling markets || Do sub-markets on the same level perform better?|
| || child markets || Are there any lower level sub-markets with better performance?|
Techniques, which have been identified as best practice for a particular market by Share-o-matic technique analysis, are flagged with an @.
Click on a market compels switch to the market and the technique of the row.
Ranking (at the bottom of assessment page) is an optional feature, default is set to [do not display].
The button beneath transactions activates / deactivates ranking display.
A technique is composed of a technical and a fundamental method. These techniques are implemented:
|Standard 1||market evaluation with relative strength 26 weeks, buy over 60%, sell under 40%, buy the strongest - sell the weakest|
|Standard 2||market evaluation with relative strength 26 weeks, buy over 60%, sell under 40%, buy the 2 strongest - sell the 2 weakest|
|Best Practice||different market parameters which were determined by Share-o-matic analysis|
|Best Long||different market parameters which were determined by Share-o-matic analysis, exclusively optimized for long investments|
|Best Short||different market parameters which were determined by Share-o-matic analysis, exclusively optimized for short investments|
|Mixed - Cut||virtual technique, best long and best short are merged, on temporal overlaps the younger converse signal is ignored|
|Mixed - Straddles||virtual technique, best long and best short are merged, on temporal overlaps the younger converse signal is considered|
| ||the new transaction uses the unrealized selling value of the prior transaction,|
| ||virtual techniques do not throw signals|
|Best Long Ex||like Best Long, the deposit components are exchanged when falling below the Ex limit in the weekly ranking by fundamental rating|
|Best Short Ex||like Best Long, the deposit components are exchanged when falling below the Ex limit in the weekly short ranking by fundamental rating|
An example for a Best Long Ex technique "L37 - 24 ex 5 (2)":
37 = the market is monitored by a relative strength of 37 weeks (how many components did rise within 37 weeks - percentaged)
24 = when the threshold of 24% is undercut, all should be sold, when reached again or exceeded the deposit should be replenished
ex 5 = when a deposit component drops out of the top 5 ranking, it should be replaced by the best top 5 component which does not belong to the deposit yet.
(2) = amount of instruments to buy
This behaves analogue for Short techniques
The Ex rule was implemented to avoid holding of instruments which have already passed their peak till the end of a long-term investment.
Currently the fundamental method is constant for all techniques:
the decision criterion for the selection of instruments is the Average Relative Strength (∅-RS),
this stands for the arithmetic mean out of all weekly percentaged changes in price of the previous year.
In practice this figure did verify as especially unerring, spikes do occur pretty seldom.
The causality can only be assumed: the ∅-RS combines short term dynamics with medium term trend.
The best practice techniques for different markets are established by Share-o-matic analysis. Thereby iterative, recursive and heuristic techniques develop and optimize a mutual knowledge base.
Above market assessment besides time navigation a base currency can be set.
If Stock Exchange is set, all quotes are left in stock exchange currency, each other settings lead to conversion of prices to the chosen currency. If you set your portfolio currency here, you will see, especially at Transactions, the performance cleared into your currency . Base Currency can be set to Euro, Dollar, Franc, Pound or Yen.
Clicking the signals button gives on overview of short term development of last signals. Links on market description lead directly to corresponding market and technique to view latest quotes.
Portfolio simulation is an instrument for developing an individual investing strategy.
The parameter setting is used to build a portfolio development simulation considering all matching signals. At the end of the investing series the entire deposit is converted into cash to determine the asset value. You should try to find a parametrization which leads to a high invested ratio. Financing by way of credit is consciously admitted to benefit from leverage effects. This can be switched off by setting rating of invest to 0 %, but that is not reasonable because final results are always positive, if there is not set a very short investing period (less than one year).
Explanation of parameters:
|select||market selection - investing range|
|World||all regional markets inclusively Global Markets without sector markets|
|USA||all US markets|
|Asia||all Asian markets|
|Europe||European markets completely|
|Euro||alle Euro markets|
|Non-Euro||all European non-Euro markets|
|Germany||all German markets|
|Resources||all markets in sector Resources|
|Finance||all markets in sector Finance|
|Green||all markets in sector Green Markets|
technique - signals of this technique(s) have to be used
currency - to get a reasonable evaluation prices have to be normalized into a base currency, Euro or Dollar can be set
invest in - you can determine whether only long, only short signals or both have to be considered
start - start year of investing series
invest/signal - this parameter determines which ratio of total asset has to be invested in every new signal. For narrow selections (World -> USA) high percentages should be used to score high investing degrees.
rating invest - this parameter defines the rating of invested asset in acquisition prices (financing by way of credit!) Set a percentage which matches your individual credit line. Usually higher results are scored with higher percentages, nevertheless, interests on credits are not considered.
The two upper parameters form the essential instrument for development of an individual investing strategy. You can experiment with different settings to find a matching optimal strategy for you.
asset - a start asset can be set. It is not necessary to choose a high value because buying works with fractions (2 decimals).
Clicking transaction date displays portfolio components with point in time rating.Thus meantime accrued profits are visible, "invest" always refers to acquisition prices.
The following functions are available only for registered users:
Exchanging best practice techniques and related signals and transactions