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Choosing the strongest candidate

Relative Strength Filters

Relative strength compares assets against each other. Instead of asking whether one asset is up or down in isolation, the strategy asks which candidate has the better recent behavior.

top-2top-3bottom-25d return21d return

Key Ideas

  • A top filter picks the highest recent return from a candidate pool.
  • A bottom filter can intentionally pick inverse or defensive assets whose recent return profile fits the hedge branch.
  • Relative strength can also use RSI when the strategy compares defensive assets like SQQQ and BSV.

Common Uses

SOXL Growth chooses top bullish baskets such as SOXL, TQQQ, SPXL, and TMF using 21-day returns.
SOXL Growth chooses bear baskets such as TMV, SQQQ, and SPXS using short 3-day return comparisons.
Momentum Switch compares TQQQ and SQQQ over 5-day and 21-day windows.
TQQQ/SOXL Rotation uses RSI to choose between SQQQ and BSV when price is below the 20-day average.

Examples

Top-2 bull filter

The strategy ranks a bullish pool by recent return and equal-weights the two strongest candidates.

SQQQ leads TQQQ over 5 days

Momentum Switch may read that as bearish pressure and rotate into SQQQ.

Watch For

  • Relative strength can chase moves that are already extended.
  • Short lookbacks react faster but can whipsaw.
  • The candidate pool matters as much as the ranking rule. A top result is only the best asset inside that specific pool.