Hull ROAR indicator helps in identifying the fastest raising shares and filters it out of the fastest rising shares. Hull ROAR is the brainchild of Alan Hull (author of active investing). ROAR stands for Rate of Annual Return. The rate of annual return is calculated by taking the annual increase in price activity and dividing by the current share price. The result is multiplied by 100 to convert it to a percentage.
Trading Rules
1)Filter Fundamentally Good Bluechip Stocks
2)Buy stocks/index if the Current Rate of Annual Return is greater than cutoff rate
3)Exit stocks/index if the Current Rate of Annual Returns is lesser than cutoff rate
Here are the backtested results for Nifty 50 index on Weekly timeframe with cutoff rate of 10%
| Symbol | Trade | Date | Price | Ex. date | Ex. Price | % chg | Profit Points |
|---|---|---|---|---|---|---|---|
| NIFTY 50 | Long | 24/05/96 | 1085.03 | 22/11/96 | 850.33 | -21.63% | -234.7 |
| NIFTY 50 | Long | 27/06/97 | 1169.65 | 09/01/98 | 1033.55 | -11.64% | -136.1 |
| NIFTY 50 | Long | 07/05/99 | 1062.9 | 16/06/00 | 1477.3 | 38.99% | 414.4 |
| NIFTY 50 | Long | 05/04/02 | 1141.95 | 06/09/02 | 995.2 | -12.85% | -146.75 |
| NIFTY 50 | Long | 11/07/03 | 1161.65 | 23/07/04 | 1601.6 | 37.87% | 439.95 |
| NIFTY 50 | Long | 04/02/05 | 2077.95 | 17/11/06 | 3852.8 | 85.41% | 1774.85 |
| NIFTY 50 | Long | 01/12/06 | 3997.6 | 06/06/08 | 4627.8 | 15.76% | 630.2 |
| NIFTY 50 | Long | 26/06/09 | 4375.5 | 07/05/10 | 5018.05 | 14.69% | 642.55 |
| NIFTY 50 | Long | 29/10/10 | 6017.7 | 15/04/11 | 5824.55 | -3.21% | -193.15 |
| NIFTY 50 | Long | 13/07/12 | 5227.25 | 12/07/13 | 6009 | 14.96% | 781.75 |
| NIFTY 50 | Long | 28/02/14 | 6276.95 | 29/05/15 | 8433.65 | 34.36% | 2156.7 |
| NIFTY 50 | Open Long | 19/08/16 | 8666.9 | 02/01/17 | 8179.5 | -5.62% | -487.4 |
Hull ROAR Indicator formula (Active Investing style) – Amibroker AFL Code
Note : The below AFL code is recommended to use in Weekly Charts
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