Cartesian Trading
peer into the 3rd dimension of research
Enhance 3-17
The Proximity Report
The Proximity Report, published daily (after the close of the market), gives viewers a single-day, non-cumulative evaluation of the QuaSAR Research Report in identifying support and sentiment resistance figures for the covered portfolio of stocks as compared to actual market activity in those stocks on that day.
Beyond listing figures, the Proximity Report also shows the QuaSAR's effectiveness as a research tool better integrated into (a) the subscriber's proprietary trading strategies and (b) guidance to be received from it's investment adviser. The Proximity Report makes this demonstration by making hypothetical trades based on reasonable but arbitrary assumptions. (See "Assumptions" tab).
Overall, the Proximity Report:
1. in using a tabular format, lists on the "y" axis, the
stocks within the portfolio, and on the "x", in
order:
(a) the QuaSAR Support Price, the Near Miss
Price, the Actual Trigger Price, the Stop(ped
Out) Or Close (Out Price), the Actual Trigger
Price, the Near Miss Price, and the
QuaSAR Resistance Price: and
(b) the Resistance Return, the Post Trigger Low,
the Stop(ped Out) Or Close (Out Price), the
Actual Trigger Price, the Near Miss Price,
and the QuaSAR Resistance Price;
2. provides Assessment Data which compares the
total number of possible support and resistance
assessments (30 of each) with the number of
assessments that the QuaSAR identified before
the market opened that day;
3. provides Trigger Data which identifies the
number of instances in which the assessments of
support or resistance are actually triggered by
market activity ("triggers");
4. provides Return Data which compares the total
number of triggers with the number of triggers
which resulted in positive returns that day;
5. provides Near Miss Non Trigger Data which:
(a) compares the number of total non trigger
near misses with those that followed the
QuaSAR's identified support or resistance
trend; and
(b) identifies the "Highest Percent Near Miss"
which measures the near miss price farthest
away from the QuaSAR's Support or
Resistance Price (by comparing the amount
of the distance between the two prices); and
(c) identifies "Lowest Percent Near Miss" which
measures the near miss price closest to the
QuaSAR's Support or Resistance Price (by
comparing the amount of the distance
between the two prices);
6. for all triggers, calculates the average return.
Note that the Proximity Report's view of the QuaSARs performance on that day does not intend to nor, in fact, necessarily indicates how future QuaSARs will perform.
Click on the "Enhance" icon for the larger (downloadable) view.
Hypothetical Trade Assumptions
Beyond listing QuaSAR and actual stock prices, the Proximity Report necessarily makes hypothetical trades (with Cartesian as the hypothetical trader) in order to show whether a positive rate of return could exist based on that day's QuaSAR research figures.
The Assumptions include the following:
1. QuaSAR support or resistance assessments are
triggered, for the purposes of the proximity report,
at the point that (a) the actual price of the stock
gets closest to the QuaSAR support or resistance
price and is within .25% of the QuaSAR support or
resistance price, or (b) when the market opens,
the stock price opens lower than the assessment
price for support or higher than the assessment
price for resistance. Assume that Cartesian
entered a limit order to buy or sell at the trigger
price.
2. Once the assessment is triggered, Cartesian
programs a stop-loss of .5% of the value of the
actual trigger price and a limit order (a "stop
gain") which is 1.5% greater than the actual
trigger price.
3. Only market activity between 9:30 A.M. and 4 P.M.
is evaluated. Pre-market activity is not evaluated.
4. Because Sentiment Analysis degrades after 12
noon, the report will only identify triggers occurring
before the 12:01 P.M. 1 minute interval period.
5. 1 minute intervals ("ticks") are used for assessing
stock prices. Tick data is sourced in a proprietary
data feed. Tick evaluations begin at 9:30 A.M. and
end at 4:00 P.M. Daily opening, closing, high and
low pricing data are sourced in the listing
exchange's time and sales data.
6. The hypothetical trades are always closed-out at
or before that day's close.
Updated August 24th, 2009
Archives
The icons below are the links to the archived Proximity Reports for the identified months.
PROXIMITIES MARCH 10
PROXIMITIES FEBRUARY 10
PROXIMITIES JANUARY 10
PROXIMITY DECEMBER 09
PROXIMITIES NOVEMBER 09
PROXIMITIES OCTOBER 09
PROXIMITIES SEPTEMBER 09
PROXIMITIES AUGUST 09
