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Subject: RAD Contract

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kevmay21
Posts:3

01-17-2007 5:08 PM Alert 

Does anyone happen to know the process one would go through to create a RAD contract as describing by Thomas Stridsman.

 

I would like to normalize all my diferent contracts to percent instead of point based data for building purposes.

 

Not sure how this would be accomplished.

 

Thank you

Kevin Whitney

 

murray
Posts:431

01-17-2007 8:42 PM Alert 

Pinnacle support ratio adjusted contracts. They are similar to split adjusted contracts in stocks and have the same problem. The dollar value is wrong , which is a big problem in commodities. For example you can't see how much money your trading system made during a given period, because a trade that made 10 points might only make 1 point because of the ratio adjustments.

 They are useful as independent intermarket series , since they can be used in ratio analysis where back adjusted contracts can not.

 

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