From 53da6bdbb2d09eef978816c526e3afc137dafe45 Mon Sep 17 00:00:00 2001 From: Gigi Cheng <256078623+gigichengnc@users.noreply.github.com> Date: Sat, 22 Aug 2026 00:20:46 +0800 Subject: [PATCH] docs: lead README with corrected research conclusion --- README.md | 27 ++++++++++++++++++++++----- 1 file changed, 22 insertions(+), 5 deletions(-) diff --git a/README.md b/README.md index c8fffc2..9a72dbb 100644 --- a/README.md +++ b/README.md @@ -1,16 +1,33 @@ -# Sector Rotation Forecasting Reconstruction +# Sector Rotation Forecasting [![Tests](https://github.com/gigichengnc/Sector-Rotation-Forecasting/actions/workflows/tests.yml/badge.svg)](https://github.com/gigichengnc/Sector-Rotation-Forecasting/actions/workflows/tests.yml) [![Python](https://img.shields.io/badge/python-3.11-blue.svg)](pyproject.toml) [![Research status](https://img.shields.io/badge/status-post--publication%20audit-orange.svg)](#current-research-conclusion) -I first conceived and started this **sector-rotation forecasting project for an HKSI competition in December 2025**. In 2026 I returned to the surviving source, audited the implementation, rebuilt the research workflow, and then subjected the rebuilt result to a second post-publication audit. +**A reproducible audit and rebuild of a 2025 RRG-style sector-forecasting prototype.** -The project began with a simple question: +The main finding is now methodological, not a forecasting headline: the legacy coordinate target can produce a similar linear-model advantage on synthetic geometric random walks with no serial predictability. The old **80.6% vs 74.0%** result is therefore retained as experiment history but **retired as evidence of market predictability**. -> Can recent sector-rotation history help predict what happens next? +The redesigned research question uses fully future sector return relative to SPY as the target. No new market-signal claim is made yet. -The historical project was inspired by Relative Rotation Graph (RRG) concepts. This repository uses an independently developed, transparent **RRG-style approximation** based on relative strength and momentum. It does **not** claim proprietary JdK RS-Ratio / RS-Momentum equivalence. +## Run it + +```bash +python -m pip install -r rebuild/2026/requirements-lock.txt +python -m pip install -e . --no-deps --no-build-isolation +pytest +python rebuild/2026/scripts/run_synthetic_null.py +``` + +The package also retains the legacy coordinate-forecast workflow: + +```bash +sector-rotation forecast +``` + +> **Interpretation boundary:** `sector-rotation forecast` produces auditable RRG-style coordinate forecasts, not expected returns, calibrated probabilities, buy/sell signals, or validated evidence of market predictability. The first forecast-driven top-3 strategy was not supported by its backtest. + +This project was conceived for an HKSI competition in December 2025 and later reconstructed and audited independently. It is not affiliated with or endorsed by HKSI or RRG Research. ## Current research conclusion