RS Composite model option: Majority Pick
Jan 26, 2026
in RS Composite
We have upgraded the Core-Satellite, Regime RS, Core-Regime RS and Advanced RS Pro and the Relative Strength backtests.
Last month we added a Majority Pick option to the Relative Strength Composite backtest. Now, Pro Subscribers wishing to reduce trade activity, can employ the Majority Pick option when testing a composite model on any of the aforementioned RS backtests.
The example below uses HYG versus its 6-month moving average as a regime indicator to switch between stock and bond RS strategies.1 When HYG is above its 6-month MA, the backtest will run the equity strategy and with Majority Pick turned on, rather than investing in the ETF picked by each of the chosen RS lengths (3 through 12-months), the backtest will instead invest only in the ETF that’s been picked by the majority of RS lengths.
When HYG is below its 6-month MA, the backtest will switch to running the bond relative strength strategy. As Majority Pick is turned on, the backtest will invest in the bond ETF that ranks first by the majority of the four RS lengths (3, 4, 5 and 6-months).
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Regular subscribers can upgrade to a Pro Subscription at My Account > Subscription Settings > Upgrade to Pro.
note:
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XZERO is simply a zero return index (i.e. it's a constant), consequently an MA of the ratio HYG / XZERO is the same as a moving average of HYG itself. See Using SPY as a regime switch.
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