The GAPO Index (TASC January 2001)

Gopalakrishnan’s Range Index (GRI) is very easy to build in the NeuroShell Trader using existing standard indicators that find the highest high, the lowest low, and the log.

The first indicators you’ll need are in the Arithmetic category. First insert the “Divide” indicator. For the denominator of the Divide, insert the “Log” indicator, setting the Log operand equal to the number of time periods.

For the numerator insert the “Log” indicator, and for the operand of the Log insert the “Subtract” indicator.

Next, in the Subtract indicator, insert the “Maximum Value” indicator as the first operand and the “Minimum Value” as the second operand. These are found in the Basic category. Set the time series for the Maximum value to the High, and set the time series for the Minimum Value to the Low. That’s it.

Users of the NeuroShell Trader Professional and DayTrader Professional will want to optimize the time period of the GRI. As a default the optimizer is capable of optimizing the period parameters (n) separately in the highest high, the lowest low, and the Log. However, that is probably not appropriate for the GRI. To make the genetic algorithm optimizer treat all of the time periods as one value, you can save the GRI you build as a custom indicator. While saving, use the Advanced button to modify the second and third period parameters (n) “applying” them to the first period parameter (n). In that way, all three period parameters become the same one so that the value the optimizer finds for one is the same value used by all.

While you are saving, you can name the indicator whatever you want and give it its own category too.


File Download

tip0101.exe

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