Screening & Backtesting / 2 / Create Signals from a Measure


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ℹ️ Clicking on image thumbnails below enlarges all screenshots.

Steps Shown in the Video


  1. Open the Measure Trace Study and Add SPY to the Chart

  • Open the measure trace backtest you created in Guide 1 (the one that tracks Medium-Term GEX/Volume Ratio for SPY over the past year).

  • In the chart view, click the “Add Series” search bar at the top (or click the little “+ Series” bubble on the chart > Market Data).

  • Type SPY → select SPY (market data / price) → click Add.

  • A dialog appears:

    • Panel: choose Top (so it doesn’t overlap the GEX trace)

    • Click Apply

You can now visually see that positive GEX periods generally have lower volatility and smoother trends in SPY.


2. Manually Create Signals on the Chart (Quick Method)

  • Click the + Signal icon.

  • The cursor turns into a crosshair — Signal Trace mode is now active.

  • Click on the chart at various points.

  • After placing the signals, click Accept and a dialog pops up:

    • Name your Signal

    • Color: choose any color you like

    • Click Apply

  • Go to the Signal Analysis tab (top of the screen).

  • In the Signal / Benchmark dropdowns:

    • Signal → select your signal

    • Benchmark → select SPY (needs to be added to Market Study first)

  • Table of average/median returns, % positive gets generated.

This works, but it’s manual. Let’s make it fully automatic!


3. Create Fully Automatic Signals from the Screener (Recommended Method)

Goal: Generate signals automatically whenever Medium-Term GEX/Volume > 0.

  • Go back to the Stock Screener exactly as you left it in Guide 1 (only SPY selected, Medium-Term GEX/Volume column present but not filtered).

  • Click Launch BacktestLaunch Measure Trace Backtest (same as before).

  • Step through the wizard exactly as before until you reach the Technical Analysis page:

    • Previous steps (Universe = Static, Metric = Medium Term GEX to Volume Ratio, Aggregation = Average) → click Next until you reach Technical Analysis.

  • On the Technical Analysis page:

    • Click Add Technical Analysis

    • Choose “Copy of Primary Metric” (this duplicates the GEX series so we can apply rules to it)

    • Toggle Signal Generation ON

  • Now set the signal rule:

    • Condition: Primary Metric Above Threshold

    • Threshold value: 0 (zero)

    • Signal name: Positive Gamma Regime

    • Click Next

  • Final page:

    • Backtest name: e.g., “SPY – Positive Gamma Regime”

    • Date range: Last 1 year (or same as before)

    • Click Confirm and Launch

4. Clean Up and View the Final Chart

Once the backtest finishes:

You will see two series:

  • The original GEX/Volume line

  • Vertical lines wherever GEX was > 0 (your automatic signals)Add SPY price again (same as Guide 1):

  • Search → SPY → add to Main pane

    Customize for clarity (exactly as in the video):

  • Click the GEX series → change style to Histogram → move to Bottom panel → color white or light gray

  • Click the signal series → make it bright green, slightly transparent

  • Keep SPY price on the main panel with right-scale enabled

    Go to the Signal Analysis tab:

  • Signal → select Positive Medium-Term Gamma Regime

  • Benchmark → SPY

  • You now have real, repeatable statistics for the regime.

Done! You now have a fully automated, backtestable “Positive Gamma Regime” signal that requires zero manual clicking ever again. Click “Run Every Day” to keep the study updated whenever new data becomes available.


When ready, click NEXT >> to continue to the next section of the Guide

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