Relative Strength Filter
Systematic asset ledger designed to isolate outperforming equity structures, document relative performance lines against the SPY benchmark, and schedule mandatory invalidation checkpoints.
Relative Strength Audit Parameters & Baseline Requirements
The Relative Strength Filter ledger establishes objective quantitative rules for symbols exhibiting decoupled price momentum relative to market indexes. Every documented candidate must maintain strict outperformance baselines, or face immediate schedule-based purge.
| Parameter | Specification / Verification Value |
|---|---|
| Benchmark Comparison Index | S&P 500 ETF (SPY) / Nasdaq 100 ETF (QQQ) Dual-Anchor |
| Relative Line Slope Standard | Minimum 15-day positive derivative versus 50-day SMA baseline |
| Screening Invalidation Level | RS line break below 20-day exponential moving benchmark |
| Scheduled Re-audit Window | 5 trading days post-breakout or every Friday close |
| Stale Asset Removal Rule | 10 consecutive sessions of benchmark lag triggers automatic archive |
| Observation Hypothesis Tag | #RS_BREAKOUT_CONSOLIDATION_LEADER |
Operational Methodology & Watchlist Hygiene Protocol
Watchlists quickly degrade into unmanageable collections of stale symbols when momentum dissipates without an audit trail. The Relative Strength Filter forces researchers to record the explicit catalyst behind an asset's outperformance, anchoring observation to concrete mathematical thresholds rather than emotional conviction.
By logging the date of initial relative strength breakout alongside the exact technical boundary where that strength becomes invalid, traders maintain absolute discipline. When broader markets experience pullbacks, assets documented in this ledger either display resilient volume accumulation or trigger immediate systematic pruning.
- Mandatory documentation of benchmark baseline ratios at initial watchlist inclusion
- Preset 5-day cycle review checkpoints with binary maintain-or-purge decisions
- Automated invalidation logging when relative line drops below prior swing lows
Frequently Asked Ledger Questions
Initialize Relative Strength Ledger Schema
Deploy the standardized Relative Strength Filter template into your personal market research workflow. Includes CSV templates, parameter definitions, and automated hygiene rules.
