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Currency Basket vs USD - Trend & RSI Breakdown

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📊 Indicator Methodology

Currency Basket vs USD – Trend & Valuation Breakdown
💱 Strategy of Rotating Between USD and the Currency Basket
💰 100% cash strategy – always ready for market crashes.

🟢 Hold USD if the trend indicator shows USD is trending.

🔵 Hold the currency basket (EUR, PLN, CZK, CHF, GBP) if the basket is trending.

✅ This way, you're always on the winning side of the trade, never risking a loss of purchasing power.
📈 Since it's a LONG ONLY, NO LEVERAGE strategy, there are no trading or holding fees, except for a small 0.15% FX fee every few months when the trending currency changes.

📈 Trend Indicator
Uses 5 different indicators working together to determine which asset is in a trend.

👀 On the chart it's visualized as:
➕ Plus symbols indicating trend strength (usually ranges from -4 to +4).

🔺 If USD has a higher trend signal than the basket → Hold USD.

🔻 If the basket has a higher signal → Hold the basket.

🕒 Signals typically last several months and operate on the 3D (3-day) timeframe, giving a high probability of catching macro moves.

💡 Valuation Indicator (Z-scored RSI)
Uses RSI with a length of 30.

Z-scored between -1 to 1.

📉 Interpretation:

-1 for USD = too strong → likely stagnation or reversal.

-1 for Basket = undervalued → likely growth or stabilization.

📊 Displayed as a separate line below the main chart.
📍 A horizontal line at 90 is added on the main chart – helping you quickly see what’s above or below this key reference level.

⚙️ How the Strategy Works in Practice
✅ You update the indicator daily (takes only seconds).
✅ The trend indicator tells you which currency to hold.
✅ The valuation indicator prepares you for possible reversals.
🔄 When the trend shifts, you rotate your full position.
⏳ Trades typically last several months.
📈 Usually generates consistent profits of 2–8%.
💪 It grows your capital while keeping you ready to buy assets during major selloffs.

🔍 Best Usage
Use it as a quick scanner to observe trend or valuation changes.
If a signal appears, validate it using additional trend and valuation indicators.
📌 If most agree, take the position.



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