A final method of recalculating all followed indexes and ETFs as equal weight is now in place. The results incur no “drift” and values relate directly to real market values. Additionally, since, as a part of the process, all values relate to a percentage scale, indexes and ETFs may be readily compared without further computation. In a chart, this means that any number of indexes and ETFs can appear in the same chart using the same scale. In an indicator or trading signal, numerous indexes and ETFs can be used in conjunction without raising comparability issues.

Although this data has been available on the site for some time now, I was not satisfied with the way it was calculated. Most methods experience some sort of “drift” over the long run. The chart looks the same, more or less, but values exhibit an upward bias (usually) over the long run winding up with values that don’t really relate to anything in the real world. Here is the example that woke me up to this problem. Buy a stock at 50. It goes up to 100, a 100% gain. It goes back down to 50, a 50% loss. Cumulative gain by this simple method is 50%. Obviously, you see the problem. Most methods seem to incorporate some degree of this “drift”. The charts look OK, but the numbers don’t relate to anything. This issue is now resolved and data posted on the web site for download. Results significantly exceed initial expectations.