Someone has asked me to write this script for them and i can't understand what they mean
So this is what he wants
He wants to create a series of variables/parameters that would be called in the main program. Then set up the main algorithm by calling the data for the instrument(s) to be traded. If condition 1 is true then buy. If condition 2 is true then sell etc. Each condition looks at the current values of the various variable/parameters to see if they are high or low enough. The qualifying levels are set as inputs (ideally) which could be optimized using their backtest capability.
He gave me this
Z2=(close of data2-Average(close of data2,lkbk))/StdDev(absvalue(close of data2-close of data2),20);
I'm Just not fully sure what he meant by all this
Z most commonly refers to normalised values related to the Standard Normal distribution in statistics. Your client is asking you to create variables with a zero mean, and to then measure the distance of the latest close from the mean in terms of 20-day volatility.
It also looks like a relative-value exercise, possibly a pairs trade, as one Z-score is being subtracted from the other.
Would you be able to help me 10-20 mins im trying to learn to code. I am stuck on something I am trying to code and have spent hours trying to understand how to fix it. I could pay you possibly.