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Karthiga Bhuvana.
Thank you for sharing the strategy—it is looking really promising! I do have a couple of questions regarding how it is implemented, and I would love to understand your underlying logic better:
Description vs. Code: The description mentions a 9-day low price reversal rank, but the code appears to rank stocks based solely on the most recent day's drop. Could you share the reasoning behind this implementation?
Dollar Value vs. Percentage: The drop is currently calculated using absolute dollar values rather than percentages. For instance, a stock dropping from 1000 to 900 yields a 100-point drop, whereas a drop from 100 to 80 yields a 20-point drop, even though the latter represents a larger relative decline (20% versus 10%). How does using absolute dollar values help align with the ranking goals?
I am sure there is a specific design choice behind these decisions, and I'd love to learn more about your perspective on them!"
QuantConnect Reconciliation
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
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