ERSA computes the rate of change of each security over the number of
periods specified, and then compares each security to every other
security, to come up with a percentile rank, from 0 to 99.
The ERSA dialog has the following options:
Time Periods in Relative Strength Calculation – Enter the
number of time periods to use in the Relative Strength calculation. The
default value is a 250-day ERS, which approximates one year.
Time Periods to Load – Enter the number of time periods to
load. If you enter, say, 500 time periods to load and 250 time periods in
the ERS calculation, you will get 250 days worth of ERS values to import
into MetaStock. Any stocks that don't have the requested number
of time periods to load won't be used in the calculation.
Last Date to Load – Enter the ending date for loading and
calculating values. Note that if the security doesn’t have data from the
Last Date to Load back through the number of periods specified in Time
Periods to Load, ERSA will exclude it from the calculations.
Weights – The number of time periods in the ERS calculation is
broken into 4 equal-sized pieces so you can assign different weights to
different parts of the data (for example, you might want to put more
weight on recent data). The calculation that you see in the
newspapers usually puts more weight on the recent data. A good
approximation would be 40%-20%-20%-20%.
The weighting calculation divides the number of time periods you
specified by 4, then takes the dollar change in each quarter, multiplies
by the weight specified, adds the four weighted changes together, and then
converts back to a percentage.
Do separate calculation on Folder Average folder (new in 2.02) -
Select this option to automatically run ERSA on your folder average
(industry index) folder. This saves you from running ERSA twice -
once on your stocks and once on your industry averages.
MetaStock folders containing your “universe” of securities
– Folder list which contains your “universe” of securities.
All of the securities in all of the folders specified are considered as
one universe in the calculation. A typical universe might look like
this:
C:\MetaStock Data\US Stocks\A - B
C:\MetaStock Data\US Stocks\C - D
C:\MetaStock Data\US Stocks\E - H
C:\MetaStock Data\US Stocks\I - L
C:\MetaStock Data\US Stocks\M - N
C:\MetaStock Data\US Stocks\O - Q
C:\MetaStock Data\US Stocks\R - S
C:\MetaStock Data\US Stocks\T - Z
If you are doing an external relative strength of, say, all of your
S&P industry groups that are in one folder, your universe might look
like:
C:\MetaStock Data\S&P Indices
Add – Adds new MetaStock folders to the folder list.
Remove – Removes the highlighted folder from the folder list.
Calculate – Performs the Relative Strength calculation on all
of the folders in the folder list. This may take a while since it has to
load up every security, calculate a rate of change for every security, and
then compare the rate of change for every security on every day and rank
by percentile. Once this is done, go to MetaStock and plot the “DeBry.com
ERSA External Relative Strength” custom formula to see the values.
Close – Closes the dialog box. Any changes you have made are
saved.
Help – Provides help.
Tip: To easily compare the performance of industry groups, simply create
a folder in The DownLoader with the S&P industry groups using Symbol
Lookup, run ERSA, and run the Explorer in MetaStock, and then run the ERSA
exploration.
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