RS Score - Performance Based Ranking Table
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Team
This query pertains to the 'Score' in the output of Performance Based Ranking Table
Path: RZone -> RS Scanner -> Performance Based Ranking TableFrom the output, I can see the 'Sharpe Ratio' columns are [Returns/SD] for the respective lookback period and the 'Total Returns' is the simple sum of returns. I see the 'Score' value changes when the I change the weights assigned to the 4 lookback periods, but I still can't understand how the Score is derived. I can't use what I don't understand. Kindly clarify.
Thank you
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@Definedge - FOLLOW UP
Team, I would appreciate a response.
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Hi Harry,
The Score builds on top of these using a weighted, multi-period approach: it looks at performance across the 60/120/180/240-day windows you've selected and applies the Weight you've assigned to each period to arrive at a single comparative measure. This is in line with the multi-period, recency-weighted relative strength methodology referenced in the tooltip( i button ), which is designed to favor stocks showing strong and consistent recent momentum.
We've verified this is computing correctly and consistently for every scan including when you change the Weight values, which is exactly why you're seeing the Score shift the way it does. That responsiveness to weight changes is working as intended.
If you'd like to get a feel for how each period influences the final ranking, experimenting with the Weight boxes is the best way to explore that you'll see the Score move proportionally based on how much emphasis you place on each period.
Regards,
Team Definedge