Performance Index: Comparing an Instrument with a Benchmark
Summary
The document describes a chart indicator that displays the ratio between a selected instrument and a benchmark instrument in a separate window. Its inputs let the user choose a calculation period, calculation method, applied price, and comparison instrument. Examples are shown for GBP/USD and USD/JPY, indicating use in currency comparisons.
The text explains the indicator’s configurable inputs but gives no formula details beyond the ratio concept, no interpretation rules, and no evidence of trading performance. A relative ratio can help visualize how one instrument moves compared with another, but the document does not establish that the indicator forecasts returns or supplies entry and exit signals. Its usefulness therefore depends on the chosen benchmark, price input, and calculation settings.
Key ideas
- The indicator plots the ratio of a target instrument to a chosen benchmark.
- Users can configure the period, calculation method, applied price, and benchmark instrument.
- The examples apply the comparison to currency pairs.
- The document does not provide trading rules or evidence that the ratio predicts future performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.