Relative Strength Peers: Complete Guide to Multi-Asset Comparison Trading

What is Relative Strength Peers Analysis?

Relative strength peers analysis is a quantitative approach that compares an asset's performance against a customizable basket of peer assets by computing RSI on their pairwise price ratios. Unlike single-asset RSI indicators that provide isolated momentum views, this implementation creates a comprehensive strength leaderboard by analyzing how each asset performs relative to every other asset in the selected group.

The indicator reveals which assets are genuinely outperforming their peers versus those simply riding market movements — a critical distinction for serious crypto traders and portfolio managers.

Overview: Understanding the Relative Strength Peers Indicator

This indicator evaluates relative strength among a customizable basket of up to 40 assets by computing RSI on their pairwise price ratios, enabling traders to identify outperformers and underperformers within a peer group. It generates a visual matrix of momentum comparisons, aggregated scores, and rankings to spotlight sector leaders for rotation strategies.

Key Benefits of Relative Strength Peers Analysis

• Multi-Asset Comparison: Analyze up to 40 assets simultaneously
• True Outperformance Detection: Separates genuine strength from correlation
• Sector Rotation Signals: Identifies rotation opportunities in real-time
• Visual Matrix Display: Emoji-coded grid for instant interpretation
• Customizable Smoothing: Dual MA options including adaptive VIDYA

What Makes This Indicator Original

Unique Features

• Dynamic Matrix Construction: Builds RSI-derived scores from asset-to-peer ratios, aggregating into per-asset sums and ranks
• Scalable Analysis: Supports 5 to 40 user-selected symbols with performance toggles
• Dual Smoothing Layers: Incorporates adaptive VIDYA for refined relative momentum signals
• Interactive Visualization: Emoji-coded comparisons (🚀/📉) with weighted points for top assets
• Data Efficiency: Confirmed bar updates and constant-source checks for reliable multi-symbol fetches

Relative Strength Peers Settings and Configuration

Group Controls

Enable RSI Analysis

• Toggles core computations and smoothing
• Optimize load for smaller peer sets when disabled

Enable Table Display

• Activates main and top-asset summary tables
• Customize visual output based on preferences

Enable Asset Selection

• Allows custom ticker inputs for personalized peer baskets
• Create tailored groups for different market segments

General Analysis Parameters

Number of Tickers for Analysis (5-40)

• Sets the peer group size
• Balance depth with processing speed

RSI Length

• Adjusts sensitivity of momentum readings on relative prices
• Standard value: 14 for balanced sensitivity

First/Second MA Type for Smoothing

• Options: None, SMA, EMA, WMA, HMA, RMA, LSMA, DEMA, TEMA, VIDYA
• Select averaging methods to filter RSI noise

Enable Second MA Comparison

• Switches scoring from absolute thresholds to relative line crossovers
• Enables divergence-focused analysis

VIDYA Volatility Lookback

• Customizes deviation sampling for dynamic smoothing
• Adapts to turbulent market conditions

Table Customization

Text Size: tiny, small, medium, large
Highlight Options: Gradient, Top Assets, Off
Show Main/Top Assets Table: Toggle full matrix vs condensed leaderboard

How Relative Strength Calculation Works

Step-by-Step Process

1. Compute Price Ratios

   • Calculate Asset A / Asset B for every pair combination
   • Creates comprehensive comparison matrix

2. Apply RSI to Ratios

   • Gauge momentum in relative context
   • Positive scores indicate outperformance

3. Optional Smoothing

   • Apply user-chosen moving averages
   • Reduce whipsaws and noise

4. Score Aggregation

   • Sum wins across all peers
   • Higher scores = stronger relative performer

5. Ranking

   • Order assets by total scores
   • Rank 1 = strongest relative performer

Interpreting the Comparison Matrix

Matrix Elements

Emoji Grid

• 🚀 = Asset outperforming peer (RSI > 50 or crossover up)
• 📉 = Asset underperforming peer (RSI < 50 or crossover down)

Sum Column

• Total number of peers outperformed
• Higher sum = stronger overall performance

Rank Column

• Position in hierarchy (1 = best)
• Based on sum totals

Points Weighting

• Rank 1: 2.0 points
• Rank 2: 1.5 points
• Rank 3: 1.0 points
• Decreasing for lower ranks

Pattern Recognition

Tight Clusters: Assets with similar scores indicate sector sync
Dispersed Patterns: Wide variations flag divergences for breakout plays
Rank Climbers: Assets moving up in rankings signal rotation opportunities

Relative Strength Peers Trading Strategies

Sector Rotation Strategy

• Scan for rank climbers in crypto baskets
• Shift from laggards to leaders mid-trend
• Rebalance based on sustained ranking changes

Basket Screening

• Weekly re-ranks guide allocations
• Overweight high-sum outperformers
• Underweight or exit bottom-quartile assets

Divergence Detection

• Dual-MA crossovers in ratios cue reversals
• Identify assets changing relative performance patterns
• Enter before absolute price confirms

Portfolio Balance

• Use points weighting for diversified entries
• Cap exposure to low-rank risks
• Scale positions by rank proximity

Recommended Usage Patterns

Crypto Sector Scans

• 20-30 major cryptocurrencies
• Standard RSI with EMA smoothing
• Daily timeframe for rotation signals

Altcoin Hunting

• Custom 10-15 altcoins
• Dual HMA for short-term divergence plays
• 4-hour timeframe

Broad Market Analysis

• 40 diverse tickers
• VIDYA for volatility-adjusted ranks
• Weekly timeframe for strategic allocation

Key Differences: RS Peers vs Traditional RSI

Common Questions About Relative Strength Peers

What's the difference between RS and RSI?

RS (Relative Strength) compares asset performance to peers/benchmark. RSI (Relative Strength Index) is a momentum oscillator showing overbought/oversold. Completely different indicators.

How many assets should I compare?

Start with 10-20 for focused analysis. Use 30-40 for comprehensive sector coverage. Fewer assets = faster processing.

Can I use this for stocks?

Yes! Compare stocks against sector ETF or direct competitors. Works for any asset class with price data.

What's a good ranking to trade?

Focus on top-third (ranks 1-13 for 40 assets). Avoid bottom-quartile unless shorting.

How often should I rebalance?

Monthly for strategic allocation. Weekly for active trading. Daily monitoring for rank changes.

Key Takeaways

• Ranks peers via RSI on ratios for clear outperformance/underperformance hierarchies
• Customizable smoothing refines signals for any volatility landscape
• Matrix and leaderboard visuals spotlight rotations at a glance
• Scalable to 40 assets with toggles that optimize performance
• Justified fusion of RSI and relatives for sector-savvy decisions
• Essential for crypto traders navigating correlated markets
• Institutional-grade analysis accessible on TradingView

Related Indicators

• Alpha Indicator: Measures risk-adjusted excess returns
• Beta Indicator: Quantifies systematic risk exposure
• Momentum RSI: Enhanced RSI with momentum confirmation
• Sharpe Ratio: Risk-adjusted return measurement

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This Relative Strength Peers indicator is part of the Profabighi Capital suite of institutional-grade trading tools designed for serious traders seeking quantitative edge in cryptocurrency and traditional markets.