RSL Momentum Rankings & Signal Research

The RSL system is based on the Relative Strength method developed by Robert Levy in the 1960s - not to be confused with the RSI (Relative Strength Index) by Welles Wilder. Levy's approach measures each security's price relative to its own moving average, then ranks all securities within the universe on a normalized 0-100 scale. A score of 85 means the security is in the top 15% of all tracked symbols by momentum strength.

An RSL entry signal is generated when a symbol's RSL percentile score crosses above 85 - meaning it has entered the top 15% of the universe by momentum. An RSL exit signal occurs when the score drops below 70. A hard stop at -10% protects against severe drawdowns regardless of the RSL score.

Before any entry signal is valid, at least 65% of the tracked universe must be trading above their 200-day moving average. This '2/3 rule' ensures new positions are only opened when the majority of the market is in an uptrend. When breadth falls below 40%, the system goes to full red and no new entries are considered.

Across 25 years of backtested data (2000–2026), the RSL system produced a positive average trade return in 21 years (84% of all years). The system performs best in sustained bull markets with clear trend momentum. In bear markets the market breadth filter significantly reduces signal frequency, limiting exposure when conditions deteriorate.

The 135-day period is Robert Levy's original specification from his 1968 research. It captures intermediate-term momentum - long enough to filter out short-term noise, short enough to remain responsive to genuine trend changes. Our backtesting confirmed this period outperforms 21-day, 42-day, and 63-day variants across all tested entry and exit thresholds.

These are shorter-period RSL variants calculated over 21, 42, and 63 trading days respectively. They provide additional context for the momentum trend - when all four measures (RS21, RS42, RS63, RSL) are aligned above their thresholds, the RSL signal is considered strongest. The main system signal is based on the 135-day RSL.

The system produces a win rate of approximately 49.5% - meaning fewer than half of all trades are profitable. This is intentional and consistent with momentum investing: the system accepts many small losses in exchange for capturing a smaller number of large winners. The positive average return of 3.71% per trade is driven by asymmetry between winner and loser size, not by win rate.

Every Monday, the current RSL rankings are locked as the weekly reference. The weekly signal table shows which symbols crossed the 85 threshold at the start of the week - these are the official entry signals. The daily table tracks movements relative to Monday's snapshot, showing rank gains and losses as the week progresses. Both tables reset each Monday.

Of the 1620 backtested signals (2000–2026), 319 triggered the -10% hard stop - representing 19.7% of all trades. Hard stops were most frequent in 2021 (49), 2011 (25), 2006 (24). These years coincide with high-volatility periods where even momentum leaders reversed sharply. The hard stop is essential precisely because momentum trades can fail quickly when market conditions deteriorate.

TSI (Trend-Signal-Indikator) is the German-language term used for momentum ranking systems based on Robert Levy's Relative Strength method - the same mathematical foundation this site uses. Several German financial publishers offer TSI-based services for a German-speaking audience. relativestrengthresearch.com applies identical RSL percentile ranking and market breadth filtering, published in English for an international audience with 26 years of independently backtested data.

End-of-day price data is collected after midnight UTC following US market close. All RSL scores, rankings, market breadth, sector and theme statistics are then recalculated automatically. The last full recalculation was completed on 2026-10-06 at 01:52 UTC.

relativestrengthresearch.com is an independent research tool built and maintained by a private trader with over 35 years of experience in financial markets and market data infrastructure. Not affiliated with any broker, data vendor, or financial institution.

End-of-day OHLCV price data is sourced from publicly available market data providers. RSL calculation, percentile ranking, market breadth, and historical statistics are computed independently using proprietary algorithms. No AI is used in signal generation - all rules are deterministic and fully documented above. Data is collected and processed after midnight UTC, following US market close.

Disclaimer: Nothing on this site constitutes financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. All trading involves risk. The RSL system parameters shown are the result of historical analysis and may not perform similarly in the future.

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