Usage

Composite Risk Index Usage

The indicator is optimized for high-timeframe charts (Daily, Weekly) to filter out intraday macroeconomic noise.

Risk-On (Score 0.8 to 2.0)

The macro environment is extremely favorable. Volatility is low, the trend is up, and momentum is positive.

• Action: Deploy aggressive trend-following strategies, maintain a long-biased portfolio, and buy structural dips.

Neutral (Score 0.0 to 0.8)

A transition phase. The market is deciding its next major directional move.

• Action: Maintain normal position sizing, but be prepared for a shift. Do not aggressively add to new long positions until a clear trend resumes.

Risk-Off (Score -1.0 to 0.0)

Volatility is expanding, and momentum is weakening. The structural trend is breaking down.

• Action: Tighten stop-losses, reduce portfolio beta, cut underperforming assets, and consider opening delta-neutral hedges.

Crisis (Score -2.0 to -1.0)

Extreme, unsustainable fear. The chart background will highlight this zone in orange/red.

• Action: While terrifying, these zones historically offer generational accumulation opportunities for long-term spot positions. Systematic accumulation (DCA) is highly favored here.