@xvks42 ·

ETF Ratio Signal

Ratio-breakout trend-following signal & backtest API.

Methodology

Each pair rotates fully between two ETFs (e.g. NIFTYBEES / GOLDBEES) based on a rolling N-day channel on their price ratio (close A / close B) - a Donchian-style breakout, not a mean-reversion rule. When the ratio closes above the last N days' high, hold A; when it closes below the last N days' low, hold B. Always fully invested in one side, never split. See how it works for a walkthrough with a real chart.

Every pair's backtest compares this strategy's equity curve against buy-and-hold on each leg and a static 50/50 split, with optional brokerage/STT/tax modeling - so the rule has to earn its keep against the obvious alternatives, not just look good on a chart.

Why this exists

Started as a way to stop taking a strategy's backtest on faith after watching Kirubakaran Rajendran walk through a Nifty BeES / Gold BeES ratio-breakout idea in "The Future of Algo Trading" (dhan.Dev Bengaluru) - wanted the actual numbers, running on live data, checkable against other sources (see the pairs list's CSV export), rather than a one-off spreadsheet.

Where I trade this

I use Dhan for execution on these pairs - fast order fills, solid charting, and the tools this kind of rules-based trading needs.

  • ₹1 crore MTF funding
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  • Instant pledge margin

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