Bias Analyzer

11 ago 2022

Name: Bias Analyzer

Category: Market Analyzer

Timeframe: 1H and 1D, depending on the Analysis type.

Technical Analysis: Usually when we think about a Trading System we start from an idea. This idea comes normally from observation and the study of the market.

Have we ever observed a market - for example Bitcoin - and thought that it increases at the start of a USA session? Great, this is a well-known category of Trading System and the purpose of the Bias Analyzer is to study these phenomena.

There are different types of Trading System that we can classify considering the market in-efficiency that we use to our advantage. In this case we make the Bias. Literally "inclination" or "presupposition" or precisely "tendency" of the price to go up or down in a temporal way.

The characteristics of the Bias depend on how much the Bias is persistent on the market since the analysed period. therefore we can consider:

• Hourly Bias: analysing the hourly behaviours during the week. Trades normally last from a few hours to a few days.
  
• Seasonal Bias: analysing the behaviour of the weeks in the monthly or annual context, evaluating the seasons.
  

Suggested usage: The possibilities of the tool are infinite, these are some scenarios of use:

• Development of Intraday Trading Systems based on Hourly Bias with possible filters for specific days of the week.
  
• Development of a Multi-day Trading System based on daily Bias with monthly analysis.
  
• To identify the best day to execute our investment through Dollar Cost Average with a bit of healthy buy the dip
  

Main features:
Hourly Summary organized in Week
The cells contain the sum of the various price deltas for the single hour. The transparency indicates the frequency in which the candles close positive or negative. This information is available both in a synthetic way, as in the first column "Sum", and for each day of the week.
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Hourly Details organized in different entry/exit
Shows the cumulative data of the various deltas, considering the purchase and the sale at certain times. In the rows are represented the buying hours and in the columns the selling hours.
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Daily Summary organized in Months
The cells contain the summation of the various price deltas for the single day.
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Hourly Details organized in different entry/exit
Allows to visualise the detailed analysis table, choosing to do it for all the months or for a specific month and shows the cumulative data of the various deltas, considering the purchase and the sale in certain days.
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Configuration: You can configure the tool easily and completely.
Analysis

• Calculate from Close to Open: this is the core of the whole analysis where the "Price Delta" to be calculated is defined. At this moment there is the possibility to calculate the distance between opening and closing.
  
• Calculate in Percent or Cash: this allows to calculate the Price Delta in Percent or in Cash.
  

Analysis on 1H Timeframe

• Show Hourly Summary on <Position>: allows to visualise the summary analysis table of the week. The cells contain the sum of the various price deltas for the single hour. The transparency indicates the frequency in which the candles close positive or negative. This information is available both in a synthetic way, as in the first column "Sum", and for each day of the week. At the bottom left there is also data which allows us to understand how many candles are being analysed. At the bottom of each day it is possible to visualise the cumulative data of the day. The position of the table is customizable.
  
• Show Hourly Details of <All Days> on <Position>: allows to visualise the detailed analysis table, choosing to do it for all days or for a specific day, and shows the cumulative data of the various deltas, considering the purchase and the sale at certain times. In the rows are represented the buying hours and in the columns the selling hours. For example, going to the table "All Days" we can see in the cell of row 13 and in column 22 the cumulative data of a possible buy on 13 and a sell at the end of 22. To facilitate the research of the values there is a configurable transparency system.
  

Analysis on 1D Timeframe

• Show Daily Summary on <Position>: allows to visualise the summary analysis table of the month. The cells contain the summation of the various price deltas for the single day: The first row is the summation of all days of the month for all months in the analysis period, while the other rows represent the analysis for the various days of the individual months.
  
• Show Daily Details of <All Days> on <Position>: allows to visualise the detailed analysis table, choosing to do it for all the months or for a specific month and shows the cumulative data of the various deltas, considering the purchase and the sale in certain days. In the rows are represented the buying days and in the columns the selling days. For example, going to the table "All Months" we can see in the cell at row 1 and at column 3 the cumulative of a possible purchase on the 1st and the sale on the 3rd. To facilitate the research of the values, there is a configurable transparency system.
  

Table Layout

• Size: allows to define the size of the text in the table.
  
• Precision: it is possible to define the decimal precision of the calculations presented in the tables.
  
• Transparency Factor: allows the application of a multiplication factor when the table calculates the transparency of detail tables.
  
• Colours: allows to specify the colours of Profit, Loss and Neutral, besides to adapt a style coherent with the Dark Mode or Light Mode of Trading View
  

Volatility Filter
It is possible to directly apply a filter to the time series on which the delta is calculated. The volatility filter uses the ATR - an indicator that allows you to calculate the volatility in a given period. Briefly: the higher the ATR value, the higher the volatility. Therefore the filter works by comparing the volatility on two periods and indicates compression or expansion.

Backtest Dates
In order to facilitate the identification of in-sample and out-of-sample data, as well as the degradation of a given behaviour, it is possible to specify a period in which to do the analysis.