If there are no stars/low number of stars for a stock, then how can there be statistical integrity behind the OVI indicator?
No stars simply means the stock is not in the S&P 500.
Low stars simply means that in a more recent segment of time, that the stock price has not correlated with its own OVI as well as other stocks have performed in the same time period.
It is a relative statistic. The statistic integrity is beyond question, as evidenced by our fund performances over the short, medium and long term, in testing and with live funds.
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Would you trade a stock, or an option, which doesn’t have any stars/low number of stars showing the level of correlation with the OVI?
No stars simply means that the stock is not in the S&P 500. The correlation score is a complex algorithm with a nuanced meaning. If presented with two choices, one with 1 star and one with 5*, then the better choice is more likely to be the 5*. ...
When Guy does the weekly watchlist, how come he doesn’t mention the OVI correlation to that stock?
Guy's main emphasis on his weekly reviews is the quality of setup and showing members the difference between the good, bad, or ugly. Regarding the OVI correlation star ratings, when one looks at a stock like Apple (a regular 5 star stock over the ...
If a stock is a 1 star, does that mean that the OVI correlates with the stock 20% of the time, and if its’ 2 star, it correlates 40% of the time etc?
The stars are relative to each other, and only apply to the constituent stocks of the SP500. 5* means that for the latest period under examination (and the periods are not short term) a particular stock is in the top quantile of stocks that correlate ...
What is the WiseTraders OVI Short, Medium, and Long Term Market Timers?
The longer term timing indicator (OVIsi) was designed with an institutional portfolio in mind, and is based on prolonged bullish or bearish conditions. As such it is a slow-moving indicator which did not turn during the Pandemic downturn of Feb-March ...
What is the OVI?
The OVI is Guy's proprietary trading indicator. It’s a unique tool that you won’t find anywhere else. The letters OVI actually stand for ‘Options Volatility Index’, and the technology itself relies on complex algorithms and billions of data ...