Vertical Solutions Risk Reward Indicator, 08/15/07
The Vertical Solutions Risk Reward Indicator is the ratio of expectation to adverse excursion over the next n days based on our best estimate of the current market conditions for the S&P 500 futures contract.
An indicator value greater than one means the average expectation is greater than the average adverse excursion. Good.
An indicator value less than one means the average adverse excursion is greater than the average expecation. Bad.
And finally, a negative value means the expecation is negative. Very bad.
5 Day Risk Reward 0.4 10 Day Risk Reward 0.6 20 Day Risk Reward 0.7