OPEN-SOURCE SCRIPT
LBR The Motley Fool Foolish Four Portfolio Rotation Strategy
Linda Bradford Raschkey's Foolish Four Portfolio Rotation Strategy
This strategy implements a rules-based portfolio rebalancing framework inspired by systematic dividend-style equity rotation concepts. It is designed to simulate structured portfolio reallocation on a fixed schedule rather than short-term trading.
🔍 What This Strategy Does
The strategy:
• Rebalances either monthly or yearly
• Allocates capital across four positions
• Uses fixed percentage allocation
• Applies realistic trading conditions (commission + slippage)
• Limits per-position risk to sustainable levels (default 5%)
This is a capital allocation strategy — not a signal-based indicator.
🧠 Core Concept
Instead of attempting to predict price direction, this model:
Uses time-based portfolio rotation.
Closes all open positions at rebalance.
Reallocates capital according to chosen weighting logic.
Maintains disciplined exposure caps.
Two allocation modes are included:
1️⃣ Equal-Weight Variant
Allocates capital evenly (25% per asset).
2️⃣ Weighted Variant
Allocates heavier exposure to one asset (40%) and lighter to others (20%), capped by the defined risk % to remain compliant with sustainable equity exposure.
⚙️ Default Strategy Properties
To comply with TradingView backtesting standards:
Initial Capital: 100,000
Order Size Type: Percent of Equity
Default Order Size: 25%
Commission: 0.05%
Slippage: 2 ticks
Pyramiding: 0
Risk Cap Per Position: 5% (user adjustable 1–10%)
These settings are used in the published version.
If users modify these values, results will change.
📊 Backtesting Notes
• Designed for long historical datasets
• Works best on equities or ETFs
• Monthly rebalance recommended to generate sufficient trade count
• Not optimized for short-term scalping
• No forward-looking data is used
Users should test across multiple assets and timeframes.
This script does not guarantee profitability and makes no performance claims.
📈 How To Use
Add to chart of a liquid equity or ETF.
Select Monthly or Yearly rebalance.
Choose allocation variant.
Keep realistic commission & slippage.
Backtest over 10+ years for meaningful sample size.
📌 Important
This is a structural portfolio framework for research purposes.
This strategy implements a rules-based portfolio rebalancing framework inspired by systematic dividend-style equity rotation concepts. It is designed to simulate structured portfolio reallocation on a fixed schedule rather than short-term trading.
🔍 What This Strategy Does
The strategy:
• Rebalances either monthly or yearly
• Allocates capital across four positions
• Uses fixed percentage allocation
• Applies realistic trading conditions (commission + slippage)
• Limits per-position risk to sustainable levels (default 5%)
This is a capital allocation strategy — not a signal-based indicator.
🧠 Core Concept
Instead of attempting to predict price direction, this model:
Uses time-based portfolio rotation.
Closes all open positions at rebalance.
Reallocates capital according to chosen weighting logic.
Maintains disciplined exposure caps.
Two allocation modes are included:
1️⃣ Equal-Weight Variant
Allocates capital evenly (25% per asset).
2️⃣ Weighted Variant
Allocates heavier exposure to one asset (40%) and lighter to others (20%), capped by the defined risk % to remain compliant with sustainable equity exposure.
⚙️ Default Strategy Properties
To comply with TradingView backtesting standards:
Initial Capital: 100,000
Order Size Type: Percent of Equity
Default Order Size: 25%
Commission: 0.05%
Slippage: 2 ticks
Pyramiding: 0
Risk Cap Per Position: 5% (user adjustable 1–10%)
These settings are used in the published version.
If users modify these values, results will change.
📊 Backtesting Notes
• Designed for long historical datasets
• Works best on equities or ETFs
• Monthly rebalance recommended to generate sufficient trade count
• Not optimized for short-term scalping
• No forward-looking data is used
Users should test across multiple assets and timeframes.
This script does not guarantee profitability and makes no performance claims.
📈 How To Use
Add to chart of a liquid equity or ETF.
Select Monthly or Yearly rebalance.
Choose allocation variant.
Keep realistic commission & slippage.
Backtest over 10+ years for meaningful sample size.
📌 Important
This is a structural portfolio framework for research purposes.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.