Time series transformation theory meets with non-conventional charting styles

The timeless Point and figure charting, the Japanese Renko or Three Line Break, are all excellent concepts that transform the underlying price data information into something that encapsulate specific principles in price movements, giving the user of such charting style a different perspective into the price history.

At TickQuest, we successfully modernized and unified the concept of time series transformations into a programming framework where users can easily implement various kinds of transformations, from the classic ones, to highly customized ones designed by the users.

Promotes Consistencies in Transformation Rules

Most charting platforms do not handle non-conventional charting style consistently over historical data and real-time updates. Designers and programmers of these platforms do not have the expertise in financial data processing, thus failing to understand the importance of consistencies in generating these charts is very important.

Super position technology formalizes the transformation rules, making it possible to generate good consistent specialize charting (i.e point and figure, renko, three line break, volume range, momentum bar, etc.) based on a base data series specification, across both historical data and real-time updates.

Promotes Innovations thru Plug-in Architecture

Super position is extensible through plug-ins created by users or third party developers. Researchers can now easily specify transformation rules that can be implemented into programming code for practical usage without ambiguity. Potentially better ways in data representation can be researched and developed in the future at a much faster pace.

Improves Consistencies in Trading Model Backtesting

Specialized charting has always suffered in terms of trading model development. Trading rules have never been easily defined for non-fundamental charting styles. For example, a point and figure chart cannot be properly backtested with rules based on its bars only because too much information regarding the underlying price series is missing. Orders just cannot be filled at the price you think possible with the point and figure bars.

With super position technology, system developers can now easily develop trading models to overcome this kind of issues and backtest with confidence that they can get consistencies on any kind of custom charting styles in their backtesting process.