Will-Spread

[Ned]

Has anyone ever coded Will-Spread (gold & bonds) into esignal? This is a means of measuring the ratio between gold & bonds using 5 & 20 ema's (the way I understand it) Larry Williams outlines in his last book.

Coding is new to me but I like this indicator and would like to work towards implementing it either in e-signal or Excel.

LW mentions in his book that it is coded in TS but I have never used that product. Reviewing esignal's manual & searching the bulletin board seemed to come up empty.

[AndyS]

Hi Ned,

It certainly seems like an interesting indicator. If you could gather up as much information on the formula as you have, go to the following link & submit it to the form, we'd be happy to look at it & if possible, code it for all to use.

Here's the link to submit; http://www.esignal.com/regform/studyrequest.asp

Regards,
Andy S.
eSignal Support

[Ned]

Desc. of Will-Spread

Here is my response to Andy's request. If anyone had anything to add it would be appreciated. From reviewing LW's book it appears as this is an older indicator he possibly wrote about earlier and then added it to last book. The book I quote from seem's to skip over the construction details a little bit. Maybe there is better description elsewhere...

“One of my favourite causitive indicators is my Will-Spread index, a measure of the flow of price between the primary market we are trading and a secondary market that influences the primary. As you know, Bonds influence stocks, and Gold influences Bonds; Will-Spread allows us to spot the inner workings of these market relationships. The index is constructed or calculated by first dividing the price of the market we are trading, the primary market, by the secondary market and multipying by 100. This creates a spread between the two markets allowing a basic comparison of market interaction.

For short term trading on 15 min. Bar charts in particular, and most other time frames as well, I then create a 5-period exponential of the spread and subtract that from a 20-period exponential of the spread. By so doing we can see when one market is heating up and get a better sense of these inner market influences.”

“Admittedley, this is a lot of work to do by hand, but the better quote software such as Omega’s Trade Station & Genesis data have now built my indicator into their programs.”
Larry Williams – Long term Secrets To Short term Trading pg.’s 138 & 141

The charts outlining the success of Will-Spread go on to use a 3 & 20, or 5 & 20, as well as him mentioning the 3 & 15 period exponential average’s. I have never ‘hand calculated’ these values or backtested their profitability. However with gold and bond markets increasing their volatility this indicator may be more useful on a go forward basis than years 1991 – 2001 when gold prices were relatively dormant.

I don’t mention the TS feature as a dig – it may save time in coding if you know it’s there.

I don’t have a scanner to forward a reproduction of the graphs he included but if that is necessary I can get it done.

Thank you for your timely response.

[Ned]

Will-Spread = Easy Money?

Anyone trade using intermarket techniques?

Has Will-Spread type concept worked? I've done intermarket studies and traded over longer terms ok. Am wondering how this works on the short term?

[millermm]

Will-Spread Index

I use the will-Spread index (on trade navigator) to trade the S&P it works vary well. Is it avalible on e-signal. if not will some one please make it. I am sick of using trade navigator to get it!!!!!

[jzolty]

willspread

you might want to use a spread chart and then place a MACD
with the 5 &20 length ave.

simple but effective.
good luck

[PP]

Will-Spread Index

Dear colleagues traders, I as well consider Will-Spread index as really interesting and would appreciate to use it with e-signal. I found following code for index but I am new to Java scripts so if anyone can translate into respective java script efs it would be really great.
Here is it:

//+------------------------------------------------------------------+
//| Will-Spread |
//| Copyright © Larry Williams |
//| Coded/Verified by Profitrader |
//+------------------------------------------------------------------+

//----

//---- input parameters
extern int FastMAPeriod = 3;
extern int SlowMAPeriod = 15;
extern string SecondMarket = "GOLD";
extern bool MarketsDirectCorrelation = true;
//---- buffers
double WillSpread[];
double Spread[];
double FastEMA[];
double SlowEMA[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string Correlation = "Invert Correlation";
if(MarketsDirectCorrelation == TRUE)
Correlation = "Direct Correlation";
IndicatorShortName("Will-Spread(" + FastMAPeriod + "," + SlowMAPeriod +
"," + SecondMarket + "," + Correlation + ")");
IndicatorDigits(Digits + 2);
IndicatorBuffers(4);
SetIndexBuffer(0, WillSpread);
SetIndexBuffer(1, Spread);
SetIndexBuffer(2, FastEMA);
SetIndexBuffer(3, SlowEMA);
SetIndexStyle(0, DRAW_LINE);
SetIndexLabel(0, "W-S");
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int i, counted_bars = IndicatorCounted();
//---- check for possible errors
if(counted_bars < 0)
return(-1);
//---- last counted bar will be recounted
if(counted_bars > 0)
counted_bars--;
int limit = Bars - counted_bars;
if(MarketsDirectCorrelation == TRUE)
{
for(i = 0; i < limit; i++)
Spread[i] = iClose(SecondMarket, 0, i) / Close[i]*100;
}
else
{
for(i = 0; i < limit; i++)
Spread[i] = Close[i] / iClose(SecondMarket, 0, i)*100;
}
for(i = limit - 1; i >= 0; i--)
{
FastEMA[i] = iMAOnArray(Spread, 0, FastMAPeriod, 0, MODE_EMA, i);
SlowEMA[i] = iMAOnArray(Spread, 0, SlowMAPeriod, 0, MODE_EMA, i);
WillSpread[i] = FastEMA[i] - SlowEMA[i];
}
//----
return(0);
}
//+------------------------------------------------------------------+