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Methodology

Last updated: July 1, 2026

This page explains, in plain language, how TwoCentsHustler's quantitative signals are built — starting with our flagship Sector Rotation Map. It is educational and methodological, not a guarantee of accuracy or future performance. See our track record page for an honest account of what we have (and have not yet) published.

The Sector Rotation Map

The Sector Rotation Map plots how a group of assets or sectors is rotating relative to a benchmark, using two classic relative-strength measures (the JdK RS-Ratio and JdK RS-Momentum methodology, applied to our own universes):

  • RS-Ratio— the relative strength of an asset/sector versus its benchmark, smoothed and normalized so that 100 means “in line with the benchmark.” Above 100 means relatively stronger; below 100 means relatively weaker.
  • RS-Momentum— the rate of change of RS-Ratio itself (not the asset's raw price momentum), also normalized around 100. It measures whether relative strength is accelerating or decelerating, not how fast the asset is moving in absolute terms.

Plotting RS-Ratio on the x-axis and RS-Momentum on the y-axis splits the chart into four quadrants:

  • Leading(RS-Ratio > 100, RS-Momentum > 100) — relatively strong and still accelerating.
  • Weakening(RS-Ratio > 100, RS-Momentum < 100) — relatively strong but losing momentum.
  • Lagging(RS-Ratio < 100, RS-Momentum < 100) — relatively weak and still decelerating.
  • Improving(RS-Ratio < 100, RS-Momentum > 100) — relatively weak but gaining momentum.

In a typical rotation, an asset's tail traces a clockwise path through the quadrants — Improving → Leading → Weakening → Lagging, and back to Improving — though any individual asset can pause, reverse, or skip a quadrant. The chart is descriptive of relative positioning, not predictive of what happens next.

We compute the Sector Rotation Map on a weekly cadence for two separate universes, each against its own benchmark:

  • Crypto sectors, measured against BTC.
  • US equity sectors, measured against SPY.

Our other signals

Alongside the Sector Rotation Mapwe publish a small set of complementary, single-purpose reads: a market-regime classification (risk-on / rotation / risk-off), market breadth and momentum (e.g. the share of a universe trading above its own moving average), funding-rate and open-interest context for crypto perpetuals, and a Fear & Greed style sentiment read. Each is meant to be understood on its own and is not a composite “buy/sell” score.

Data sources and timing

Inputs are pulled from keyless public market-data sources on a schedule, not in real time. All figures shown are delayed and/or end-of-day — they are not execution-grade, live, or tick-by-tick data. Do not use any signal on this site to time an actual trade entry or exit. Treat every chart and number as a snapshot for context, with a lag between when the underlying market moved and when our figure updates.

Not financial advice

Not financial advice. Information only — not an offer or solicitation. Availability of exchange services varies by jurisdiction. The Sector Rotation Map and every other signal on this site are educational tools for understanding relative positioning, not investment recommendations. Markets are risky and you can lose money. Always do your own research and, where appropriate, consult a licensed professional.