Long Trade Plan on Pioneer Natural Res [PXD] – Making a profit of 13.5% in 82 days
December 17, 2019
Details of a trade that we published on the Edge platform for our clients for the TAC Portfolio.
One of the best forms of price discovery is to be able to have an accurate read on where the trading activity has taken place in the market by time. Quantlogic has redefined Price Discovery through the introduction of our Edge Speedos which revolutionise the way we look at price. Here are a few illustrative visuals relevant to an open trade we have on the Edge Platform.
Fig 1:- Trade illustration speedo and Chart
Here we are showing this trade against a 6 months Trading Activity Speedo colour keyed from time of order and colour keyed into a Daily Candlestick chart. Also shown are the order details.
Fig 2:- Trade Speedos vs Relative performance Speedo
6 months Trading Activity Speedo colour keyed from time of Entry. Also, shown is the relative performance of this trade relative to its benchmarks.
The importance of normal distribution and Standard Deviation.
All reversionary markets conform in some form or other to Normal distribution. These bell curves become evident over and over again and understanding the relationship of these consensus areas is a key part of price discovery. As significant is Standard deviation. More often than not very significant levels in the market are a function of key Standard Deviation levels.
Fig 3:-Standard deviation speedo and chart
We calculate our Standard deviation levels monthly for periods up to 60 months. These levels then become valid as a projection for the following month. So in the case below we have calculated 6M daily Standard deviation levels and are showing these against a 12 month speedo colour keyed for the last 7 months. This has been linked into a nine month candlestick chart. Note the vertical white lines on the chart denote the 6 month period of calculation with the levels being available on the 1st day of the current month.
Fig 4:- Standard Deviation speedo
Wouldn’t it be great to see all the Standard Deviation levels over different time periods? Well, now you can. Here is our visual that shows all the SD levels going back 5 years. Note where they correlate:-
Fig 5:- Stock vs Sector
In order to see the trading activity in context to the sector we have illustrated below a 12 month Speedo of the individual stock against its relative Sector Benchmark. Again colour keyed from time of order.
Fig 6:- 12 Months vs 24 months Trading Activity Speedo
In order to see the trade in context to the longer term we have colour keyed the trade from time of order and are showing this against a 12 month and 24 month Speedo.
Fig 7:- 6 month speedo vs RSI speedo showing Daily, Weekly and Monthly values side by side.
Fig 8:- Illustrates all the key metric levels around a particular price.
Edge has the ability to recall and display all of the key metrics around the previous day’s close price or a price that you nominate. All our proprietary levels and market levels are mapped out in 3 zones that can be programmed to different tolerances above and below the designated price level. These include support and resistance, fibonacci and Standard deviation levels as well as key moving averages. This avoids the need of having large numbers of indicators in charts.
Our level analytics are consistent with our theme of improving price visualisation wherever we can.