How does the ETH RSI Crossover Yield Set work?
The ETH RSI 60/40 Crossover Yield Set implements a crossover strategy on the ETH Relative Strength Index oscillator indicator. Learn more about RSI and other oscillators here.
On a high level, the Set functions exactly the same as the ETH RSI 60/40 Crossover Set. Learn more about details under the hood for ETHRSI6040 here.
However, when the RSI falls below support at 40, ETHRSIAPY will rebalance into cash (cUSDC) and earn interest on Compound. Learn more about cUSDC and cTokens here.
See the chart below:
RSIs are oscillators, a category of technical indicators separate from moving averages. Compared to moving averages, RSIs typically do not make excess trades in choppy and horizontal markets.
Advanced traders typically use RSIs and moving averages in combination to create more accurate entry and exit points for trades.
How does the Set perform?
Disclaimer: The content below is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. The content below is provided for educational purposes only, and not indicative of future performance. None of the following should be interpreted as investment advice. The tools used below follow a predefined set of parameters and aren’t actively managed by Set Labs Inc.
This chart below compares the hypothetical performance of holding the ETHRSIAPY Set against holding ETH over the last 3 years, assuming a slippage rate of 1% during each rebalance. The model shows ETHRSIAPY would have outperformed over the given historical time period and underperformed in the bull market of 2017 and the last 6 months.
The chart below illustrates the ETH that would have been accumulated using the ETHRSIAPY Set following the same assumptions above.
It’s important to keep in mind the the charts above are based on a number of assumptions and are only meant for illustrative purposes. As always, past performance is not indicative of future performance.
These charts use generated ETH hourly data sourced from Gemini. In production, the ETHRSIAPY Set rebalances based on MakerDAO’s ETH price feed, which may output different results. If you’d like to play around with the data yourself (and tweak the parameters), feel free to fork the spreadsheet here.
How is RSI calculated on TokenSets?
The ETH RSI is calculated using the on-chain MakerDAO ETH price for the past 14 days at 7:00 pm UTC each day. Therefore, the RSI only updates once every 24 hours. Link to technical documentation of the RSI oracle here.
What are the additional criteria needed to trigger a rebalance?
The RSI updates once every 24 hours, so a rebalance is kicked off approximately the same time each day if conditions are satisfied. Rebalances for this Set take ~30min to settle. There is no confirmation period unlike moving average Sets.
How long does the rebalance take to complete?
Rebalances for the ETHRSIAPY take approximately 10-30 minutes to complete depending on the size of the market cap. Learn more about Set rebalances here and our TWAP Rebalancing feature here.
View the ETH RSI 60/40 Crossover Yield Set.