Indicator Overview

The Opportunity Cost model is a high-level decision-making tool designed to solve the problem of asset selection and capital efficiency. In every market cycle, certain assets act as leaders while others lag. This tool models the Opportunity Cost of your investment choices by comparing two assets (both cryptos and stocks) and visualising the performance gap between them.

By simulating a side-by-side growth path starting from the exact same initial capital, the indicator reveals which asset is generating superior relative returns. The chart plots the Base Asset (Green) against the Comparison Asset (Grey Dashed), making it immediately clear when one is pulling away from the other.

How To Use

This tool is essential for backtesting rotation strategies and identifying which assets in a portfolio are truly pulling their weight.

• Selecting Assets: Input any two tickers (e.g. SOL and ETH). The model identifies the earliest date in history where both assets were live, ensuring the comparison starts on a mathematically level playing field.

• Performance Gap: This critical percentage stat tells you how much extra wealth you would have generated (or lost) by choosing Asset A over Asset B. If the gap is +50%, it means Asset A earned you 50% more profit than Asset B for that specific timeframe.

• Identifying Leaders: Use the "Winning Asset" box to quickly identify the current momentum leader. This helps investors avoid "loyalty bias" toward lagging assets like ETH if others like SOL or BTC are showing higher relative strength.