The Better Rotation Indicator uses 8 major ETFs to track Global Macro trends.
This indicator helps visualize the rotations from one Global Macro asset class to another – from unloved and over-sold to hot and being chased by the herd. Right now (4Q 2016) we’ve got a rotation taking place as Government Bonds get overtaken by Commodities. A sea change that could last quite a while.
This is fascinating. Thank you for sharing with us.
elie S.
There’s also a second version of the indicator code for tracking 9 major Forex pairs. Another way of seeing where the money is flowing around the world. Remember, there are some major currencies that are pegged – Chinese Yuan, Hong Kong Dollar, Singapore Dollar and Saudi Riyal – so including them in the analysis adds little value.
How to add the Better Rotation Indicator to a chart
These instructions are for TradeStation and the ‘Better Rotation Asset Class’ version of the indicator. Start with a new Workspace:
- File > New > Workspace
- File > New > TradingApp Window > Chart Analysis
- Format > Symbol > Settings tab > Symbol field input SPY > Select Weekly interval and 20 years back > Scaling tab > Sub-graph Hidden > OK
- Insert > Symbol > Symbol field input EEM > Tick Prompt for format > Plot > Scaling tab > Sub-graph Hidden > OK
- Repeat the step above for TLT, LQD, HYG, DBC, GLD and lastly IYR
- Check you’ve input the symbols correctly by going Format > Symbol and you should see the same thing as the image above
- Insert > Indicator > _Better Rotation Asset Class > OK
- Insert > Indicator > _Better Rotation Asset Class > Tick Prompt for format > OK > Inputs tab > Change Normalise input to True > Check the Lookback value is 52 > OK
The steps for adding the ‘Better Rotation Forex’ version of the indicator are almost the same. Just add the following symbols (hidden) to a new chart:
- EURUSD (Euro)
- AUDUSD (Australian Dollar)
- GBPUSD (British Pound)
- NZDUSD (New Zealand Dollar)
- USDCAD (Canadian Dollar)
- USDJPY (Japanese Yen)
- USDCHF (Swiss Franc)
- USDMXN (Mexican Peso)
- USDZAR (South African Rand)
Then add the Forex version of the indicator. Please note there is no ‘Normalise’ input with the Forex version of the indicator. Instead the bold white line calculates the average of the 9 Forex symbols and shows what they are doing (on average) against the US Dollar.
Better Rotation Indicator – Update 15 April 2018
The TradeStation EasyLanguage code was updated to fix the ‘divide by zero’ error that was generated when Normalise = True was selected. In addition, the average Forex calculation was changed to use the Dollar Index (DXY) weightings.
Better Rotation Indicator for TradeStation, NinjaTrader & MultiCharts
I hope this video on Global Macro asset class rotation was helpful to you. Download the Better Rotation Indicator (unlocked code) for TradeStation, NinjaTrader 8 and MultiCharts below. A huge thank you to Simon K. for coding the indicators for NinjaTrader 8 and Chun-Kai for coding the indicators for MultiCharts. Don’t forget to unzip the NinjaTrader download first to see how to set up the indicators in NinjaTrader 8. If you want to see how the indicators work, this link will take you to a text file with the EasyLanguage code.
