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Description
Experience Level: Expert
Looking for a good mathematician interested and experienced in Financial markets
Hello, I am Paul Langham experienced Financial trader.
I am looking for an experienced developer from the Financial trading arena who can help me with a mathematical problem which entails adapting a well know financial indicator called RSI(Relative Strength Index)
The RSI creates an oscillator which moves between 0 and 100 but this indicator, even though it is world famous, is fundamentally flawed and I would like to improve it.
In order to qualify for this job the developer needs to have a good understanding of mathematics and financial markets and be able to help modify the calculation used to create this indicator. In this way we can resolve the very large issue with it, namely that it does not correct detect over bought or over sold situations which stay overbought/over sold for a long time.
My idea will be to remove the idea that the result has to oscillate between 0 and 100 and create something which results in a value either above zero or below zero but with no extreme limits. So extreme readings can go as far as they like and not be limited by the 100 value.
This way it will be possible to see when a financial instrument is extremely over bought or extremely over sold.
Now of course this might mean we have to quite fundamentally amend the workings of the RSI which I understand but I would like to stay as close possible, to the original idea which gave rise to its creation.
The formula for the normal RSI is as follows:
RSI = 100 - 100 / (1 + RS)
Where RS = Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame/
“The RSI provides a relative evaluation of the strength of a security's recent price performance, thus making it a momentum indicator. RSI values range from 0 to 100. The default time frame for comparing up periods to down periods is 14, as in 14 trading days.
Traditional interpretation and usage of the RSI is that RSI values of 70 or above indicate that a security is becoming overbought or overvalued, and therefore may be primed for a trend reversal or corrective pullback in price. On the other side of RSI values, an RSI reading of 30 or below is commonly interpreted as indicating an oversold or undervalued condition that may signal a trend change or corrective price reversal to the upside.”
http://cns.bu.edu/~gsc/CN710/fincast/Technical%20_indicators/Relative%20Strength%20Index%20(RSI).htm
Details on the workings of the RSI are posted below as well
https://www.investopedia.com/terms/r/rsi.asp
Hello, I am Paul Langham experienced Financial trader.
I am looking for an experienced developer from the Financial trading arena who can help me with a mathematical problem which entails adapting a well know financial indicator called RSI(Relative Strength Index)
The RSI creates an oscillator which moves between 0 and 100 but this indicator, even though it is world famous, is fundamentally flawed and I would like to improve it.
In order to qualify for this job the developer needs to have a good understanding of mathematics and financial markets and be able to help modify the calculation used to create this indicator. In this way we can resolve the very large issue with it, namely that it does not correct detect over bought or over sold situations which stay overbought/over sold for a long time.
My idea will be to remove the idea that the result has to oscillate between 0 and 100 and create something which results in a value either above zero or below zero but with no extreme limits. So extreme readings can go as far as they like and not be limited by the 100 value.
This way it will be possible to see when a financial instrument is extremely over bought or extremely over sold.
Now of course this might mean we have to quite fundamentally amend the workings of the RSI which I understand but I would like to stay as close possible, to the original idea which gave rise to its creation.
The formula for the normal RSI is as follows:
RSI = 100 - 100 / (1 + RS)
Where RS = Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame/
“The RSI provides a relative evaluation of the strength of a security's recent price performance, thus making it a momentum indicator. RSI values range from 0 to 100. The default time frame for comparing up periods to down periods is 14, as in 14 trading days.
Traditional interpretation and usage of the RSI is that RSI values of 70 or above indicate that a security is becoming overbought or overvalued, and therefore may be primed for a trend reversal or corrective pullback in price. On the other side of RSI values, an RSI reading of 30 or below is commonly interpreted as indicating an oversold or undervalued condition that may signal a trend change or corrective price reversal to the upside.”
http://cns.bu.edu/~gsc/CN710/fincast/Technical%20_indicators/Relative%20Strength%20Index%20(RSI).htm
Details on the workings of the RSI are posted below as well
https://www.investopedia.com/terms/r/rsi.asp
Paul L.
100% (20)Projects Completed
21
Freelancers worked with
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Projects awarded
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Last project
24 Feb 2019
Belgium
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