Technology Stocks RSPS

Technology Stocks RSPS Indicator - TradingView Description
Overview

The Technology Stocks RSPS (Relative Strength Portfolio System) indicator is a sophisticated portfolio allocation tool designed specifically for technology sector stocks. It calculates relative strength positions and provides dynamic allocation recommendations based on technical price momentum analysis.

Key Features

- Relative Strength Analysis: Compares 15 major technology stocks and the XLK sector ETF
against each other and gold as a baseline

- Dynamic Portfolio Allocation: Automatically calculates optimal position sizes based on relative
performance

- Visual Portfolio Performance: Tracks cumulative portfolio returns with color-coded
performance indicators

- Customizable Table Display: Shows real-time allocation percentages and optional cash values
for each position

- Technical Momentum Filtering: Uses normalized indicators to identify strength and filter out
weak positions


Included Assets

Sector ETF: XLK
Major Tech Stocks: AAPL, MSFT, NVDA, AVGO, CRM, ORCL, CSCO, ADBE, ACN, AMD, IBM, INTC, NOW, TXN
Benchmark: Gold (TVC:GOLD)

How It Works
The indicator calculates a relative strength score for each asset by comparing it against:

Gold (baseline commodity)
All other technology stocks in the pool
The XLK sector ETF

Assets with positive relative strength receive portfolio allocations proportional to their strength scores. Weak or negative performers are automatically filtered out (allocated 0%).
Visual Elements

Red Area: Aggregate strength of major technology stocks

Navy Blue Area: Overall technical positioning index (TPI)
Performance Line: Cumulative portfolio return (blue = cash-heavy, red = equity-heavy)
Allocation Table: Bottom-left display showing current recommended positions

Important Limitations
This indicator primarily uses technical data and has significant limitations:

❌ No fundamental economic data (ISM, CLI, etc.)
❌ Limited monetary data - missing critical components:
comprehensive monetary data
Funding rates
Detailed bond spreads analysis
Collateral data

❌ No sentiment indicators
❌ No options flow or derivatives data
❌ No earnings or valuation metrics

The indicator focuses purely on price-based relative strength and technical momentum. Users should combine this tool with fundamental analysis, economic data, and proper risk management for complete investment decisions.
Settings

Plot Table: Toggle allocation table visibility
Use Cash: Enable to display dollar amounts based on portfolio size
Cash Amount: Set your total portfolio value for cash allocation calculations

Use Cases

Sector rotation within technology stocks
Relative strength-based portfolio rebalancing
Technical momentum screening for tech sector
Dynamic position sizing based on price trends

Technical Notes

The script avoids for-loops to reduce calculation errors and noise
Uses semi-individual calculations for each asset
Requires the Unicorpus/NormalizedIndicators/1 library for normalized momentum calculations
Maximum lookback: 100 bars


Disclaimer: This indicator is a technical tool only and should not be used as the sole basis for investment decisions. It does not incorporate fundamental, economic, or comprehensive monetary data. Always conduct thorough research and consider your risk tolerance before making investment decisions.