Multi-Asset Rotation Model

Overview

This indicator provides a quantitative framework for analyzing a dual-leg rotation model between growth assets (Equities) and defensive assets (Precious Metals). It uses a mathematical approach—selectable between DMI-based Trend Spread or Rate of Change (ROC)—to determine relative strength and simulate a hypothetical rebalanced portfolio.

How it Works

The script evaluates two primary "legs" of a portfolio:

Domestic Growth: Rotates between Midcap (NSE:NIFTYMIDSML400) and Metals based on relative momentum.

International Growth: Rotates between NASDAQ-100 (NSE:MON100) and Metals.

Hedge Logic: When the model shifts to defensive mode, it further splits the allocation between Gold and Silver based on their internal relative strength.

Key Features

Dual Signal Engine: Toggle between a DMI (Directional Movement Index) spread or simple ROC (Rate of Change) to suit your research style.

Friction Modeling: Includes a user-defined "Slippage" input to account for the impact of transaction costs and tracking errors in hypothetical historical data.

Performance Dashboard: Displays total return, CAGR (Average Annual Return), Sharpe Ratio, and Rolling Returns for the model vs. benchmarks.

Dynamic Visualization: The Strategy NAV line changes color based on the model's current regime (Aggressive vs. Defensive).

Compliance & Risk Warning

Hypothetical Performance: This script displays a "Net Asset Value" (NAV) line based on historical data. These results are hypothetical and do not represent actual trading.

Educational Use Only: This tool is intended for research and backtesting analysis. It does not provide trade signals or investment advice.

No Future Predictions: Past performance, as modeled here, is not indicative of future market behavior.