Caruso Adaptive relative strength

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qykso

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HI Guys,

Does anybody have watched this champion stock traders video about the indicator he use?

I really interested in his adaptive RS, the one he is using is in tradingview platform with color background to differentiate the relative strength.

You can watch his video start talking about indicator at 33 mins.

At the moment i use Relative Strength from Mobius, it works differently because of the calculation, i am really interested in how Caruso does his calculation so adaptive to the trading regime.

Any thoughts?
 
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qykso said:
HI Guys,

Does anybody have watched this champion stock traders video about the indicator he use?

I really interested in his adaptive RS, the one he is using is in tradingview platform with color background to differentiate the relative strength.

You can watch his video start talking about indicator at 33 mins.

At the moment i use Relative Strength from Mobius, it works differently because of the calculation, i am really interested in how Caruso does his calculation so adaptive to the trading regime.

Any thoughts?
Click to expand...
Yes, watched his webinar where he discusses the adaptive RS but never gives out what goes into computing it. Believe he uses alpha (derivative of beta) to compute adaptive RS, although its just a guess.
 
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IsItPossible said:
Yes, watched his webinar where he discusses the adaptive RS but never gives out what goes into computing it. Believe he uses alpha (derivative of beta) to compute adaptive RS, although its just a guess.
Click to expand...
In the current RS i am using, i find the values are very adaptive to the short term period.
The code

input Primary = "SPX";
input n = 10;
input n2 = 10;
def P = close(Primary);
def C = close;
def Pstoch = ExpAverage((P - lowest(P, n)) / (highest(P, n) - lowest(P, n)), n);
def Stoch = ExpAverage((c - lowest(c, n)) / (highest(c, n) - lowest(c, n)), n);
plot RS = round(ExpAverage(Stoch/Pstoch, n2)*100,0);
plot "85" = if isNaN(close) then double.nan else 85;
"85".SetDefaultColor(Color.Gray);


this calculation based on the recent 10 days, some how in his RS, it has cover much longer period, also there is less noise.
 
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wDzGwg5.png
 
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So went to Tradingview to see if I could find Caruso scripts, I was unable to find his scripts, however I did find a script that looks similar to the one requested here, it looks like it colors the background red in the down turn of price, maybe one of these great coders here can convert this pine script to thinkscript and even possibly color background to green when in uptrend, we can only ask
Code: 
study("VDUB-TRENDMASTER_WALL[RS]", overlay=true)
//  ||-->   Concept vdubus, Code RicardoSantos. <-------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   Input:  <-----------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_Type = input(defval=0, minval=0, maxval=2, title='0: Crossover, 1: MACD, 2: STOCH')
_A = input(defval=0, minval=0, maxval=6, title='Input A for Crossover:(0: SMA, 1: WMA, 2: EMA, 3: Kijun-Sen(Base), 4: Tenkan-Sen(Conversion), 5: Senkou Span A(Leading A), 6: Senkou Span B(Leading B))')
_B = input(defval=0, minval=0, maxval=6, title='Input B for Crossover:(0: SMA, 1: WMA, 2: EMA, 3: Kijun-Sen(Base), 4: Tenkan-Sen(Conversion), 5: Senkou Span A(Leading A), 6: Senkou Span B(Leading B))')
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   SMA, EMA, WMA Inputs:  <--------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_MA_SRC = input(close)
_MA_A_Length = input(12)
_MA_B_Length = input(24)
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   Ichimoku cloud  <---------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
IC_A_conversionPeriods = input(34)
IC_A_basePeriods = input(26)
IC_A_laggingSpan2Periods = input(52)
IC_A_displacement = input(26)
IC_B_conversionPeriods = input(34)
IC_B_basePeriods = input(26)
IC_B_laggingSpan2Periods = input(52)
IC_B_displacement = input(26)
//  ||-->   Functions:  <-------------------------------------------------------------------------------------------------------------------------------||
donchian(len) => avg(lowest(len), highest(len))
leadLine1(_conversionPeriods, _basePeriods)=>
    _conversionLine = donchian(_conversionPeriods)
    _baseLine = donchian(_basePeriods)
    avg(_conversionLine, _baseLine)
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   MACD  <-------------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_MACD_SRC = input(close)
_MACD_K = input(21)
_MACD_D = input(34)
_MACD_I = input(4)
//  ||-->   Functions:  <-------------------------------------------------------------------------------------------------------------------------------||
_MACD_FAST()=>
    [_fast, _, _] = macd(_MACD_SRC, _MACD_K, _MACD_D, _MACD_I)
    _fast
_MACD_SLOW()=>
    [_, _slow, _] = macd(_MACD_SRC, _MACD_K, _MACD_D, _MACD_I)
    _slow
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   STOCH  <------------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_STOCH_SRC = input(close)
_STOCH_Length = input(14)
_STOCH_K = input(2)
_STOCH_D = input(4)
/  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   Output:  <----------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
CrossOverA = _Type == 0 and _A == 0 ? sma(_MA_SRC, _MA_A_Length) :
        _Type == 0 and _A == 1 ? wma(_MA_SRC, _MA_A_Length) :
        _Type == 0 and _A == 2 ? ema(_MA_SRC, _MA_A_Length) :
        _Type == 0 and _A == 3 ? donchian(IC_A_basePeriods) :                            // Ichimoku Baseline
        _Type == 0 and _A == 4 ? donchian(IC_A_conversionPeriods) :                      // Ichimoku Conversion
        _Type == 0 and _A == 5 ? leadLine1(IC_A_conversionPeriods, IC_A_basePeriods) :   // Ichimoku leading A
        _Type == 0 and _A == 6 ? donchian(IC_A_laggingSpan2Periods) :                    // Ichimoku leading B
        _Type == 1 ? _MACD_FAST() :
        _Type == 2 ? sma(stoch(_STOCH_SRC, high, low, _STOCH_Length), _STOCH_K) :
        na
 
CrossOverB = _Type == 0 and _B == 0 ? sma(_MA_SRC, _MA_B_Length) :
        _Type == 0 and _B == 1 ? wma(_MA_SRC, _MA_B_Length) :
        _Type == 0 and _B == 2 ? ema(_MA_SRC, _MA_B_Length) :
        _Type == 0 and _B == 3 ? donchian(IC_B_basePeriods) :                            // Ichimoku Baseline
        _Type == 0 and _B == 4 ? donchian(IC_B_conversionPeriods) :                      // Ichimoku Conversion
        _Type == 0 and _B == 5 ? leadLine1(IC_B_conversionPeriods, IC_A_basePeriods) :   // Ichimoku leading A
        _Type == 0 and _B == 6 ? donchian(IC_B_laggingSpan2Periods) :                    // Ichimoku leading B
        _Type == 1 ? _MACD_SLOW() :
        _Type == 2 ? sma(stoch(_STOCH_SRC, high, low, _STOCH_Length), _STOCH_D) :
        na
 
OutputSignal = CrossOverA >= CrossOverB ? 1 : 0
bgcolor(OutputSignal>0?gray:red)
//=================================================
 
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qykso said:
can someone please help?
Click to expand...

I believe you are missing the point....

  1. Understand what is Adaptive Relative Strength? - It is incorporating volatility of the underlying instrument (stock or ETF) while computing Relative Strength.
  2. What constitutes volatility of an instrument? - Beta of that instrument - please google "Beta of a stock" for better understanding
  3. What is Alpha? - shows how well (or badly) a stock has performed in comparison to a benchmark

Hence to compute Adaptive RS, we need to somehow incorporate either beta or alpha with basic Relative Strength formula which shall constitute better version of basic RS.

Hope this helps...
 
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qykso said:
can someone please help?
Click to expand...
Break Trader said:
So went to Tradingview to see if I could find Caruso scripts, I was unable to find his scripts, however I did find a script that looks similar to the one requested here, it looks like it colors the background red in the down turn of price, maybe one of these great coders here can convert this pine script to thinkscript and even possibly color background to green when in uptrend, we can only ask
Code: 
study("VDUB-TRENDMASTER_WALL[RS]", overlay=true)
//  ||-->   Concept vdubus, Code RicardoSantos. <-------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   Input:  <-----------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_Type = input(defval=0, minval=0, maxval=2, title='0: Crossover, 1: MACD, 2: STOCH')
_A = input(defval=0, minval=0, maxval=6, title='Input A for Crossover:(0: SMA, 1: WMA, 2: EMA, 3: Kijun-Sen(Base), 4: Tenkan-Sen(Conversion), 5: Senkou Span A(Leading A), 6: Senkou Span B(Leading B))')
_B = input(defval=0, minval=0, maxval=6, title='Input B for Crossover:(0: SMA, 1: WMA, 2: EMA, 3: Kijun-Sen(Base), 4: Tenkan-Sen(Conversion), 5: Senkou Span A(Leading A), 6: Senkou Span B(Leading B))')
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   SMA, EMA, WMA Inputs:  <--------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_MA_SRC = input(close)
_MA_A_Length = input(12)
_MA_B_Length = input(24)
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   Ichimoku cloud  <---------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
IC_A_conversionPeriods = input(34)
IC_A_basePeriods = input(26)
IC_A_laggingSpan2Periods = input(52)
IC_A_displacement = input(26)
IC_B_conversionPeriods = input(34)
IC_B_basePeriods = input(26)
IC_B_laggingSpan2Periods = input(52)
IC_B_displacement = input(26)
//  ||-->   Functions:  <-------------------------------------------------------------------------------------------------------------------------------||
donchian(len) => avg(lowest(len), highest(len))
leadLine1(_conversionPeriods, _basePeriods)=>
    _conversionLine = donchian(_conversionPeriods)
    _baseLine = donchian(_basePeriods)
    avg(_conversionLine, _baseLine)
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   MACD  <-------------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_MACD_SRC = input(close)
_MACD_K = input(21)
_MACD_D = input(34)
_MACD_I = input(4)
//  ||-->   Functions:  <-------------------------------------------------------------------------------------------------------------------------------||
_MACD_FAST()=>
    [_fast, _, _] = macd(_MACD_SRC, _MACD_K, _MACD_D, _MACD_I)
    _fast
_MACD_SLOW()=>
    [_, _slow, _] = macd(_MACD_SRC, _MACD_K, _MACD_D, _MACD_I)
    _slow
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   STOCH  <------------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
_STOCH_SRC = input(close)
_STOCH_Length = input(14)
_STOCH_K = input(2)
_STOCH_D = input(4)
/  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
//  ||-->   Output:  <----------------------------------------------------------------------------------------------------------------------------------||
//  ||--------------------------------------------------------------------------------------------------------------------------------------------------||
CrossOverA = _Type == 0 and _A == 0 ? sma(_MA_SRC, _MA_A_Length) :
        _Type == 0 and _A == 1 ? wma(_MA_SRC, _MA_A_Length) :
        _Type == 0 and _A == 2 ? ema(_MA_SRC, _MA_A_Length) :
        _Type == 0 and _A == 3 ? donchian(IC_A_basePeriods) :                            // Ichimoku Baseline
        _Type == 0 and _A == 4 ? donchian(IC_A_conversionPeriods) :                      // Ichimoku Conversion
        _Type == 0 and _A == 5 ? leadLine1(IC_A_conversionPeriods, IC_A_basePeriods) :   // Ichimoku leading A
        _Type == 0 and _A == 6 ? donchian(IC_A_laggingSpan2Periods) :                    // Ichimoku leading B
        _Type == 1 ? _MACD_FAST() :
        _Type == 2 ? sma(stoch(_STOCH_SRC, high, low, _STOCH_Length), _STOCH_K) :
        na
 
CrossOverB = _Type == 0 and _B == 0 ? sma(_MA_SRC, _MA_B_Length) :
        _Type == 0 and _B == 1 ? wma(_MA_SRC, _MA_B_Length) :
        _Type == 0 and _B == 2 ? ema(_MA_SRC, _MA_B_Length) :
        _Type == 0 and _B == 3 ? donchian(IC_B_basePeriods) :                            // Ichimoku Baseline
        _Type == 0 and _B == 4 ? donchian(IC_B_conversionPeriods) :                      // Ichimoku Conversion
        _Type == 0 and _B == 5 ? leadLine1(IC_B_conversionPeriods, IC_A_basePeriods) :   // Ichimoku leading A
        _Type == 0 and _B == 6 ? donchian(IC_B_laggingSpan2Periods) :                    // Ichimoku leading B
        _Type == 1 ? _MACD_SLOW() :
        _Type == 2 ? sma(stoch(_STOCH_SRC, high, low, _STOCH_Length), _STOCH_D) :
        na
 
OutputSignal = CrossOverA >= CrossOverB ? 1 : 0
bgcolor(OutputSignal>0?gray:red)
//=================================================
Click to expand...
 
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qykso said:
HI Guys,

Does anybody have watched this champion stock traders video about the indicator he use?

I really interested in his adaptive RS, the one he is using is in tradingview platform with color background to differentiate the relative strength.

You can watch his video start talking about indicator at 33 mins.

At the moment i use Relative Strength from Mobius, it works differently because of the calculation, i am really interested in how Caruso does his calculation so adaptive to the trading regime.

Any thoughts?
Click to expand...
My suggestion---opinion only----learn to read price, start with weekly charts, drill to daily,...you can see the same chart pattern
 
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