I thought I would share a couple things that may help others. I’m new to trading, so if anyone has any feedback, or comments, or if I got anything wrong - please let me know.
My goal was (as the bottom has been falling out of the market) to understand the relative performance of my portfolio in relation to the market. Stated differently, are my long positions down because I made bad choices, bought at the wrong time or are they a casualty of the general downturn in the markets.
As I looked at well-known market indicators:
SPX Representing the S&P-500
IXIC Representing the NASDAQ composite index
DJI Representing the Dow Jones Industrial average
I learned that the SPX represents roughly $31.6 trillion in 500-US companies, the IXIC represents $17.2 trillion in 100 large US companies, and the DJI represents $8.3 trillion in 30 of the largest US companies.
Sharing this without permission of the author:
This helped me understand the valuation, and overlap of these averages.
It’s widely understood that you can look at these indicators within charts using TradingView.
What was less-obvious to me is that TradingView is powerful in-that you can also combine multiple symbols, and perform mathematical operations using the symbol-selection dialog (command line).
VIEWING REALTIME PROFIT / LOSS VIA TRADINGVIEW:
Ford motors is on the NYSE, so you can enter: F ; Tradingview prepends the exchange and looks up: NYSE:F. Resulting in a graph of Ford motors.
But let’s say you bought 100 shares of Ford at $10.54/share and you really want TradingView to show you a graph of your profit or loss on your investment.
So your cost for this block of stock is: 100 (shares) x $10.54/share = $1,054.00
To show a graph of your profit in Tradingview, you can enter:
NYSE:F * 100 - 1054
This tells Tradingview to calculate the current value of 100 shares, and subtract your basis, of $1,054.00, resulting in a real-time view of your profit/loss.
VIEWING REALTIME PROFIT / LOSS FOR A GROUP OF HOLDINGS TRADINGVIEW:
I built an equation in Google Sheets / Excel, to create a string like this for each of my long positions.
You can concatenate multiple positions together like this. Let’s say you have a position in
NYSE:UL*182-9978.15 ; representing a position in UL
NYSE:SQ*44-9881.52 ; representing a position in SQ
NYSE:MSFT*43-9949.6 ; representing a position in MSFT
NYSE:UL*182-9978.15+NYSE:SQ*44-9881.52+NYSE:MSFT*43-9949.6 ; representing the overall profit/loss on this group
VIEWING REALTIME COMBINED MARKET PERFORMANCE VIA INDEX SUMMARY:
Similar to the process listed above, I built a spreadsheet that combines the SPX , IXIC and DJI.
So the math I used here is the market-cap of SPX / the market cap of DJI, to calculate a relative multiplier.
Based on this, you can open Tradingview, and in the stock selection dialog, enter:
Based on this you can now view a single real-time graph showing the relative performance of the SPX , IXIC and DJI.
Hopefully this will help someone and if I got anything wrong here, please let me know (while trying to be nice).
Another point here is that when you are viewing the profit / loss of a single stock or a group of stocks, you can view the performance as a percentage or as a dollar-amount by changing the settings icon in the bottom of the right column of your chart.
and the combined line should read:
I realize the volume of these ETF’s doesn’t mirror overall volume, but it may still be useful.
The March 2020 crash caused a -33.7% market drop which took 166 days to recover.
Comparing that drop to other stocks, if you look at the same data for MSFT, it dropped -28% and took 119 days to recover.
Similarly ARKF, it dropped by -34.5%, but recovered in 90-days.
I think what all the naysayers are missing here in this downturn is that we will see another $2T (trillion) dollars enter the monetary supply, which will cause devaluation of the dollar. If you think of this in terms of hard assets, like shares in a company, those shares will be worth much more (in dollars) as these additional funds enter the market.
I think using this combined with something like a 50-EMA can help you from buying-in when you think you've seen the bottom but where bottom has not yet occurred.
Open the stock selector and paste this:
Then apply whatever functions you like.
Search for: Simple Moving Averages by stocksinboxx
Add this to your chart
select properties for this function.
under Style tab at top, disable (un-check) all SMA #'s except for SMA #5
under Inputs tab, scroll down to line that reads: SMA #5, and set whatever interval you like, I have been using 50
I seriously apologize for this but I made a mathematical error. The concatenated string for the combined indicator should be:
In my original post, I accidentally multiplied by the scaling factor instead of dividing. The string listed above correctly weights the three stock indexes equally. I also corrected the referenced Google Sheets spreadsheet.
Thank you for a great tool.
TradingView can also calculate the total cost of a position as part of the formula:
This is handy for numbers that aren't so easy to calculate by mental arithmetic:
For short positions, the formula is exactly the same, but the profit will display on the y-axis as a negative number:
For long-term trend-following positions that have involved buying and selling, the price per share has to be the breakeven price of the position. This would need to be calculated in a spreadsheet beforehand.
thanks to your tip here, i can now chart and analyze my total portfolio (i only have 8 positions) and apply my indicators - and see when is the right time to take profit on some of the positions, before a down turn is expected..
that is gold buddy ... big thank you again .. keep it up. :)