This course includes some technical indicators and trading strategies that I have developed to be used with Amibroker. These formulas are unique to Marwood Research and can be used in your own trading and investing models.
The Market Meanness Index is based on a statistical fact – a series of random numbers will revert to the median with a probability of 75%. This is because, by definition, half the series of prices will be below the median and half will be above. Therefore, if a market is not moving in a similar pattern, prices are not random and more likely to be trending. This indicator is designed to filter trending markets and avoid whipsaw trades and was first developed by JCL from Financial Hacker. We provide two versions of the code here.
The Butterworth filter is a type of signal processing filter first described in 1930 and named after British engineer and physicist Stephen Butterworth. The goal of the Butterworth filter is to produce a frequency response as flat as possible in the passband with the intention of minimizing noise and maximizing signal. In recent years, the Butterworth filter has been used for trading in financial markets due to it's superior smoothing and signal processing characteristics. This indicator was based on an implementation by John Ehlers.
This code was created to go along with the Candlestick Analysis for Professional Traders course where I test 29 candlestick patterns on a range of different markets. To run the exploration, load the formula, set up your watchlist and date range then click Explore. The code will scan for 29 popular candle patterns. Bearish patterns will be colored red and bullish patterns green.
This code is for a rotational long/short strategy that uses custom scoring made up of different indicators to rank stocks. For example, if RSI(3) is over 70, score 1 point. If ROC(5) is over 5, score 1 point. If Close > MA(C,200) score 2 points etc. The system will rank all symbols and buy the symbols with the highest scores and simultaneously short the symbols with the lowest scores.
This code implements the classic dollar cost averaging strategy but for individual stocks. Now you can simulate the process of investing a fixed amount into a portfolio of individual stocks each month based on different ranking and rules. Parameters can be adjusted to suit the investing approach you want to test.
This code contains a simple momentum strategy with the ability to implement monthly, quarterly or annual cash injections. Use the Parameters tool to adjust the frequency and scale of deposits and see how your equity grows/falls. The system shows strong returns over the last 18 years but when regular contributions are made into the strategy fund, the equity skyrockets. The purpose is to show that regular investment into your chosen strategy can reap big rewards.
These Amibroker formulas are unique to Marwood Research and are distributed under Creative Commons BY 4.0 licence. You are free to share and distribute this work so long as you give credit to the original author (Marwood Research).
All formulas are provided in 'as is' format and should be used at your own risk. All formulas are provided for educational purposes only and are not guaranteed to be accurate or error free. Financial trading is risky, please see the full risk warning.
Joe Marwood is an independent trader and investor specialising in financial market analysis and trading systems. He worked as a professional futures trader for a trading firm in London and now works through his own private company.
He started his career as a day trader and worked right through the financial crisis of 2008/2009. He has a passion for building mechanical trading strategies and uses a blend of fundamental and technical analysis to find low-risk investment opportunities.