Starting today, we are offering price action anomaly detection for 32 ETFs to our Market Signals and All-in-One subscribers as a free bonus.
Below is a recent example of price action anomaly detection.
Results of DLPAL DQ price anomaly detection for 32 ETFs with data from inception to November 7, 2022:
P is the win rate, P1 is the win rate for a one-day exit, Trades is the number of trades, CL is the maximum number of consecutive losers, and Target and Stop are the values of the profit target and stop-loss used in identifying strategies. C indicates the type of target and stop-loss.
The results of the validation revealed a price action anomaly in QQQ ETF.
The validation is based on a portfolio backtest of each identified anomaly (strategy) on all 32 ETFs. We are interested in the three last columns of the results, Port PF, Port E, and Win Rate. Those are the portfolio profit factor, the portfolio expectation, and the percentage of ETFs this anomaly was profitable, respectively. We prefer the Port PF to be larger than 1.20 and the Win Rate to be above 55%, and preferably above 65%.
The signal for short QQQ had a Port PF of 1.26 and a Win Rate of 59.38%.
From the open of November 8 to the low of November 9, 2022, the QQQ ETF fell 2.2%.
Notes
- Click here for our premium options.
- Click here for an introduction to anomaly detection and examples.
- The price action anomaly detection page will be updated only when there is a significant price action anomaly according to our validation criteria.
- We do not make trading suggestions. This content is for informational purposes only.
- Validation methods are based on the ensemble domain, but the performance of price action anomalies is determined in the time domain. As a result, there is a high risk of false positives.
- The target and stops are used in identifying the price action anomalies. These are not necessarily the target and stops to be used in evaluating the performance forward but we recommend using values within the range of those used in the analysis.
- Price action anomalies are rare. Updates to this page may not be frequent.
- The DLPAL DQ software is available for sale to those who would like to extend this type of analysis to other markets.
Disclaimer: The Price Action Anomaly Detection results are provided as part of the Premium Content for informational purposes only and do not constitute investment advice or actionable content. We do not warrant the accuracy, completeness, fitness, or timeliness for any particular purposes of the Premium Content. Under no circumstances the Premium Content should be treated as financial advice. The author of this website is not a registered financial adviser. Before subscribing please read our Disclaimer and Terms and Conditions.
