About Market Pulse
A tool for modern stock trend analysis and strategy backtesting.
The main dashboard allows you to track multiple stock tickers simultaneously. Each stock card provides a concise summary of its current trend status across three different timeframes: daily, weekly, and monthly.
The trend is determined using Bollinger Bands with a period of 50 and a standard deviation of 2. This helps identify whether a stock is in a bullish, bearish, or neutral phase based on its price relative to the bands.
- Bullish Zone: Price is above the middle band.
- Bearish Zone: Price is below the lower band.
- Watch List: Price is between the lower and middle bands.
- Correction Watch: Price has breached the upper band, signaling it's potentially overbought and may correct.
The "Strategy" page for each stock runs a 15-year backtest of a specific trend-following strategy. This allows you to evaluate the historical performance of the strategy for a given ticker.
Entry Condition:
A buy trade is initiated when the weekly closing price of a stock moves above its upper Bollinger Band (50, 2). This signals a strong bullish breakout.
Exit Conditions:
A position is closed based on one of two conditions:
- EMA Crossover: The position is sold if the weekly closing price falls below the 100-week Exponential Moving Average (EMA). This acts as a long-term trend filter.
- Trailing Stop-Loss: A dynamic stop-loss is set using the Average True Range (ATR). The stop is placed 1.8 times the ATR (14) value below the highest price reached during the trade. This helps to lock in profits while giving the trade room to move.
- Cumulative Profit: The total net profit or loss from all trades over the 15-year period.
- Win Rate: The percentage of trades that were profitable.
- Profit Factor: The gross profit divided by the gross loss. A value greater than 1 indicates a profitable system.
- Sharpe Ratio: Measures the risk-adjusted return, considering the volatility of returns. A higher Sharpe Ratio is better.
- Sortino Ratio: Similar to the Sharpe Ratio, but it only penalizes for downside volatility, making it a potentially more relevant measure of risk.
- Calmar Ratio: Measures return relative to the maximum drawdown. A higher Calmar Ratio indicates better performance during the worst periods.