How It Works | Building Blocks

Indicators are the building blocks of strategies. In order to detect real time events we need indicator data pre calculated and stored in a database.

Defining Indicators for use in Stock Market Strategies

Detecting near real time events in the stock market for hundreds of symbols is hard. This program to calculate indicators will continuously calculate the math behind a pre-defined list of indicators. When the stock market is live this script will run in a continuous loop. It will process through our symbols in the "Compatible Symbols List" and run all the equations to calculate indicators. It will perform thousands of calculations across 3 time periods. This will ultimately allow us to ask near instantaneous questions of the data.

Here is an example as to how we might use this database to ask question of the entire market at any given moment.

Example Show me all the stock symbols in the 1 hour time frame where the 8 period EMA crossed above the 13 period EMA while the RSI is less than 30 and we are below the mid line of a of 200 period Donchian Channel. Also have the close price be above the 50 SMA on a Daily Time Period

Currently the system is configured with 43 indicators. There is a lag of about 20 seconds from when the time period closes ( Example: the close of the 1 hour bar) to when the data becomes available. It takes dozens of cores of computing power to process 1000's of stock market symbols across 3 time periods. The 20 second delay can be improved upon by utilizing more processing power.

Step: 3

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"Building Blocks". For the next step in the series, click below.

Defining Indicators to use in Strategies

How It Works Series