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Ryan's avatar

I'm a little confused about the methodology. " Weighted results are then summed with scores ranging from 0 (extreme bearish momentum) to 1.0

(extreme bullish momentum)." What are the time frames scaled against to generate 0-1 score?

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James Picerno's avatar

Each return is weighted, e.g., a 5% return with a 20% weight = 0.01 (5%*20%). Repeat for each return and then sum. Assuming the weights used to adjust each return add up to 1, the sum result will range from 0 to 1.

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Ryan's avatar

I follow, does it then require multiplying by 10?

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James Picerno's avatar

If you want percentages, multiple the end result by 100, otherwise leave as is for a range within 0 and 1.

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