SeasonAlgo Forum

Hello,

After reading the Help about Combination , I will like to get more explanation about the difference between standard & normalized , with real example of spreads , Buy CK14-WK14,

Standard:
When I get the result , I see a scale Start at -280 at the Down scale , and -160 at the Upscale.

Where will be the optimal Number in the scale of the Current spread to get the optimal Profit potential ?
Where will the optimal place in relation to the other spreads?

Normalize:
From 0 to 100

Where will be the optimal Number in the scale of the Current spread to get the optimal Profit potential ?
Where will the optimal place in relation to the other spreads?

Thank you,

Moti

Hi Moti

You can't use Combinations chart to get profit target or stop loss (PT/SL). This chart shows all combinations of expiration months and is useful to see how they behave. For example you can see volatility and pick combination which suits your money management.

You need Stacked or Continuation chart to see important historical price levels which helps you to place PT/SL. What I use to determine PT/SL:

- Price action of current spread (support/resistances)
- Historical years price action (again S/R)
- Backtests values (avg profit, avg best, avg worst)
- RRR of SL/PT

You always have to use absolute values (standard). Normalized values are only good to see how historical years affect seasonal pattern calculation (more about normalized values and patterns is here http://www.seasonalgo.com/patterns)

Roman