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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.