If you’re a full-time trader, you probably have a very refined trading system. You know exactly what signals to monitor — screaming at you to either buy or sell out. What if you had a real-time table feeding you the data on all of those signals WHILE you’re in a trade? Learn more about the ScaleTrade Statistics Table.
If you’re a full-time trader, you probably have a very refined trading system. You know exactly what signals to monitor — screaming at you to either buy or sell out.
What if you had a real-time table feeding you the data on all of those signals WHILE you’re in a trade? It’s almost…
Their founding engineers worked with professional traders to compile a list of calculations (each explained below) that provide meaningful, real-time info to help you when trading.
RVI is used to measure the volatility of the individual security in comparison to other securities within the exchange. To do this we take the Average Directional Index (ADX) of the security over a period of 14 candles and divide it by the ADX of SPY (SPDR S&P 500 ETF Trust). To read it, we note that if the number is greater than 100%, the security is trending more than from SPY and if it is less than 100%, the security is trending less than SPY. If the value is exactly 100%, it means the security and SPY are perfectly correlated over the observed period in regards to volatility. To read more on the ADX indicator, please visit this reference.
RVI = ADX(security, 14) / ADX(SPY, 14)
The Average True Range (ATR) in the ScaleTrade Statistics table tells us how volatile the ticker is today relative to the past 14 days. To do this, it simply compares today’s ATR against the same ticker’s 14-day ATR.
The true range indicator is taken as the greatest of the following: current high less the current low; the absolute value of the current high less the previous close; and the absolute value of the current low less the previous close. The ATR is then a moving average, generally using 14 days, of the true ranges. (Investopedia)
To view the detailed ATR equations, you can visit our documentation here.
The gap is exactly what you’d expect: the difference between the prior day’s closing price and the current day’s opening price. Gaps are often filled, so this can give insights into a potential gap-fill trade.
% Gap = ((market open — prior close) / prior close) * 100
The RSI tells traders whether a stock is getting close to overbought or oversold territory. As it gets closer to 100, it is seen as more overbought while being closer to 0 indicates oversold. The RSI displayed on the table is on a 14-day time frame.
To view the detailed RSI equations, you can visit our documentation here.
The SVR can tell traders, at a glance, whether or not the ticker you are viewing is heavily shorted. This can give insights such as sentiment and potential for a short squeeze.
The Short Volume Ratio compares the current volume of the security to the short volume of the security. To do this, we use the ticker FINRA:<security>_SHORT_VOLUME (referenced as SVD in the formula) which will retrieve the short volume data of the given security. This can be used to determine how much short volume is present in the security and help determine if there will be a large directional move. Note this indicator is calculated on the daily timeframe.
% SVR = (SVD / volume) * 100
Finally, the SIR provides more real-time short activity on a particular stock. It allows traders to see how quickly short interest may be rising or falling on a daily time frame.
The Short Interest Ratio compares the current outstanding shares of the security to the total short volume of the security. To do this, we use the ticker QUANDL:FINRA/FNSQ_<security> (referenced as FNSQ in the formula) which will retrieve the total short interest of the day. Similarly to the SVR, this can be used to determine how much short interest is present in the security and help determine if there will be a large directional move. Note this indicator is calculated on the daily timeframe.
% SIR = (FNSQ / volume) * 100
This is just one feature in the 3-part process that ScaleTrade is trying to create. Ultimately, we want to help traders Scout out great plays, Target exactly when to buy/short, and have X-ray vision feeding them real-time info during the trade.
In terms of Scout, we’ve already built the Gap tool to find high-probability trades on unusually volatile tickers.
In terms of Target, we’ve built an algorithm that’s outperforming SPY by over 17.22% in the past month.
This feature is currently only available to Premium ScaleTrade users. BUT, you can now get 20% OFF your first month using code ‘MEDIUM20’ at checkout for their monthly plan: Join Monthly Plan.
You’re also in luck if you still want trading tools but aren’t in a position to pay for a subscription. ScaleTrade recently launched their Lite Discord Server where pro-level traders are invited to share the most inconvenient and time-consuming parts of their trading process. Then, the ScaleTrade team will build tools to automate and improve said process, all for free! You can join that using this link: Join Free Discord
What other tools should ScaleTrade build? Happy Trading!