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### WiseTrader Toolbox

**#1** Selling **Amibroker** Plugin featuring:

### BoH Risk Aversion Indicator for Amibroker (AFL)

Betting on Harmonics replicated RGE’s Risk Aversion Indicator which is a macro approach for measuring investors’ risk appetite. The indicator is computed by taking the correlation between rank of returns and volatility in the market over the past 21 days. Being a correlation, the indicator oscillates between -1 and 1.

This is an excellent addition to one’s tool box for gauging risk appetite using market volatility.

http://genkumag.wordpress.com/

### Screenshots

### Similar Indicators / Formulas

### Indicator / Formula

_SECTION_BEGIN( "BoH Risk Aversion Indicator" ); //MyPercentRank Function as Coded by Ramon Cummins function MyPercentRank( Data, Periods ) { Count = 0; for( i = 1; i < Periods + 1 ; i++ ) { Count = Count + IIf( Ref( Data, 0 ) > Ref( Data, -i ), 1, 0 ); } return 100 * Count / Periods; } function RAI( Length ) { PCHG = ( C / Ref( C, -1 ) ); xRR = MyPercentRank( PCHG, 252 ); Vol = StDev( PCHG, 252 ) * 3.1; xRAI = Correlation( xRR, Vol, Length ); return xRAI; } //RAI Plot Length = Param( "Correlation Period", 21, 1, 300, 1 ); xRAI = RAI( Length ); Plot( xRAI, "", colorGreen, styleThick ); Plot( 0, "", colorDarkRed, styleThick | styleNoLabel ); Plot( 0.2, "", colorDarkRed, styleDashed | styleNoLabel ); Plot( -0.2, "", colorDarkRed, styleDashed | styleNoLabel ); _SECTION_END();

### 6 comments

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1.genkumagValues above 0.20 correspond to RISK TAKING

Values below -0.20 correspond to RISK AVERSE

Values between -0.20 and 0.20 correspond to RISK NEUTRAL

2.oleGet error unless change name of PercentRank() which is a built-in function but it is not needed as it is exactly the same result as the built-in.

3.anandnstAFL NOT WORKING IN 5.40 VERSION OF AMIBROKER.

4.chetan ninganiya@admin

dear sir, can you please correct the code…it ain’t working sir.

i’ll be very grateful of you .

thanks.

5.administratorTry it now. I have renamed the rank function from ‘PercentRank’ to ‘MyPercentRank’. If your Amibroker version is not ancient you can remove the function altogether and use the built in version.

6.chetan ninganiya@admin

thanks sir. it worked and was really helpful.