Relative Strength Portofolio Strategy (RSPS) | Dextra

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Relative Strength Portofolio Strategy (RSPS) | Dextra

Conceptual Foundation and Strategy Innovation
RSPS is a multi-asset rotation strategy that combines pairwise relative strength analysis across major cryptocurrencies with a robust market regime filter, along with an automatic safe-haven switch to Gold or USD (cash) during weakening market conditions. The strategy is designed to dynamically allocate capital to the cryptocurrency exhibiting the strongest relative dominance during bull phases, while significantly reducing exposure when overall crypto momentum fades—aiming to capture upside from the leading sector while limiting large drawdowns.
The core approach relies on a custom momentum indicator optimized for each asset pair, incorporating hysteresis to maintain signal stability and prevent excessive rotation (whipsaw). This creates a responsive rotation system that adapts to shifts in sector strength within the crypto market, focusing on capitalizing on the strongest prevailing momentum.

Market Regime Detection
Overall market regime is determined by a custom momentum indicator applied to the CRYPTO INDEX.
Gold strength is evaluated separately via a similar indicator on the Gold asset, serving as the trigger for safe-haven allocation during bearish conditions.

Pairwise Relative Strength Analysis
Relative strength is measured through pairwise comparisons between assets using custom indicator with period and threshold parameters tailored specifically to each pair—reflecting the unique volatility and historical behavior of each relationship.

Scoring System
Each asset receives a score (0–5) based on how many other assets it “outperforms” in the pairwise comparisons.
The highest score identifies the current relative leader.
During bull markets: allocation focuses on the top-scoring cryptocurrency.
During bear markets: the system switches to GOLD (if showing strength) or USD (cash) as a defensive position.

Allocation Guidance
The script defaults to suggesting 100% allocation to the selected asset to maximize exposure to the strongest momentum. However, traders can adjust exposure percentages based on personal risk tolerance—for example, allocating 70–90% to the dominant asset and keeping the remainder in USD or stablecoins to reduce portfolio volatility.

Equity Curve & Risk Metrics
Equity curve is calculated in real-time starting from a user-defined date.
Maximum Drawdown (MDD) is tracked and displayed as the primary risk metric.

Visualization and Dashboard Features
Equity Curve: Thick line plot with dynamic coloring based on the currently active asset.
Bar and Background Coloring: Transparent green during bull regime, red during bear.
Table in the bottom-right corner: Displays real-time scores for all assets (including USD and GOLD when relevant), with asset-specific background colors and highlighting for high scores.
Information Label: Shows the current active position, total ROI (as a multiplier), and MDD (%).

Assets Covered
Major cryptocurrencies: BTC, ETH, SOL, SUI, BNB, HYPE
Safe-haven assets: GOLD, USD (cash)

It performs best on the daily (1D) timeframe, where noise is reduced and signal reliability is higher.

Summary
RSPS | Dextra provides a fully automated asset rotation framework based on pairwise relative strength with pair-specific parameters, combined with clear market regime detection and risk-off mechanics. With its comprehensive visual dashboard (score table, colored equity curve, and real-time performance metrics), the script serves as a powerful decision-support tool for navigating crypto market dynamics—capturing upside from leading sectors while protecting capital during downturns.

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