Coming Soon

Note

This is a work in progress and not finalize. Please stay tuned for the upcoming release!

Introducing the Tanner Bands

Date: TBD

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SPY with Bollinger Bands from 2016-06-30

Overview

As we started trading with technical indicators, Tanner Bateman noticed that traditional Bollinger Bands assume an asset moves in a symmetrical nature, but that’s not always the most accurate way to model upward and downward price movements for all ETFs or stocks. By utilizing data science our team determined there are specific upward and downward magnitude moves per underlying asset.

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Can we make the Bollinger Bands better?

Why does it matter?

By understanding confidence ranges for upward and downward price moves, we can estimate that under normal market conditions (excluding Greece 08/2015, China 12/2015 and Brexit 06/2016) assets have upper and lower thresholds that box in movement.

What can we use it for?

With by putting an asset into a bounding box we can use the Option Spread Profitability analysis system to determine optimal contract prices that fall within our level of exposure + confidence (where do we set the upper and lower strike prices).

What are the next steps?

Now that we have tuned the Tanner Band for the SPY, QQQ and XLF we will be continuing to model and track the performance and accuracy of the Tanner Band. By understanding how an indicator works mathematically we can begin trading after we have optimized and tuned technical indicators for any equity asset. Let us know if you have an asset in mind.

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Weighing the tradeoffs: Reactive vs Predictive

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Introducing the Tanner Bands - Reactive + Predictive

Thanks for reading,

Jay and Tanner

Want to talk more?