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Backtesting as a Public Service - TrendSpider Blog

Author: Dan

Backtesting as a Public Service

A lot of traders have asked me why we decided to implement a backtesting engine in TrendSpider. That’s a great question – because backtesting is an interesting thing, to say the least. Let’s start with a definition:

Backtesting is the process of applying a trading strategy or analytical method to historical data to see how accurately the strategy or method would have predicted actual results. (source)

Webinar on Sunday: Join us for a System Update Webinar

On Sunday, June 16th at 5pm Central Time / 6pm Eastern Time, TrendSpider will be hosting a webinar to discuss the latest additions, improvements, upgrades and changes to the TrendSpider platform. This will include a presentation, a demonstration of some of the new capabilities, and discussion about the future of the platform. While this is aimed primarily at TrendSpider customers, anyone is welcome to attend. There will be a 45 minute presentation, followed by 15-20 minutes of Q&A, as needed.

To register and attend the webinar, please RSVP here.

Use Raindrops to Supercharge Your Favorite Indicators through Native Volume-Weighting

Raindrop Charts are a new type of financial chart that leverages volume data to render visualizations that demonstrate not just where price moved, but how volume was distributed along with this move. In order to facilitate this type of chart, arbitrary breakpoints such as open and close prices must be eliminated in favor of volume weighted average prices (VWAP). Each Raindrop consists of two sides, and each side represents one half of the trading period. The bar dashes on either side represent the VWAP for that half of the trading period.

What are Raindrop Charts and why should you care?

I am very proud to write about a new feature that we have been developing for many months, since last October to be precise. This is something that is very special to me because I am a volume oriented trader, and I need to see price movements on volume in order to feel any conviction in my trade plans. This is a new feature, and it’s somewhat different than other features we have built. Instead of trying to automate something people already do – with this feature, we’re inventing something new — something we’re calling Raindrop Charts. In this post, I wanted to briefly tell you why I believe these are a big deal and why you should pay attention.

Raindrop Charts™ Combine Price & Volume to Better Analyze Market Sentiment

Chicago Fintech invents a new human-friendly volume profile chart that helps traders focus on actual market sentiment rather than abstract prices.

CHICAGO, May 29, 2019 — TrendSpider, today announced the release of a new type of financial chart, called Raindrop Charts™.

The Raindrop Chart is a new type of financial chart that abstracts away arbitrary constructs, such as open and close prices, and focuses on changes in market sentiment. Rather than conveying price changes, Raindrop Charts incorporate volume to validate price movements and provide deeper insights. This makes it a compelling alternative to traditional candlestick charts that focus exclusively on price and require additional overlays to analyze volume.

In a Raindrop Chart, each bar, known as a Raindrop, covers a fixed period of time and consists of the high, low, along with left and right means. The left mean is the mean price, weighted by volume, for the first half of the period, and the right mean is the mean price, weighted by volume, for the second half of the period.