fintech-algorithms

Inverse Daily-Reset Index

Install and import

bash
npm install fintech-algorithms
ts
import { calculate } from "fintech-algorithms/index-and-benchmark-engineering/strategy-indices/inverse-daily-reset-index";

Signature

calculate(data)

Worked example

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input

data
{
  "returns": [0.02, -0.015, 0.01, -0.025, 0.018, 0.006],
  "inverseMultiple": 1,
  "dailyCost": 0.0001,
  "baseLevel": 1000
}

Call

calculate(data)

Returns

object with 4 fields: strategyReturns, levels, endingLevel, multiple

{
  "strategyReturns": [-0.0201, 0.0149, -0.0101, 0.0249, -0.0181, -0.0061],
  "levels": [1000, 979.9, 994.50051, 984.456055, 1008.969011, 990.706672],
  "endingLevel": 984.663361,
  "multiple": 1
}

Diagrams

Inverse Daily-Reset Index — article hero
Inverse Daily-Reset Index — failure guard
Inverse Daily-Reset Index — worked example

Calculation flow

Inverse Daily-Reset Index calculation flow 
flowchart LR
    A["Point-in-time inputs"] --> B["Validate units and timing"]
    B --> C{"Contract feasible?"}
    C -->|No| D["Reject with reason"]
    C -->|Yes| E["Calculate Inverse Daily-Reset Index"]
    E --> F["Recompute invariants"]
    F --> G{"Checks pass?"}
    G -->|No| D
    G -->|Yes| H["Publish audited output"]
Inverse Daily-Reset Index methodology state 
stateDiagram-v2
    [*] --> FrozenInputs
    FrozenInputs --> Validated: contract passes
    FrozenInputs --> Rejected: missing or infeasible
    Validated --> Calculated: apply named rule
    Calculated --> Audited: invariants pass
    Calculated --> Rejected: invariant fails
    Audited --> Published: version and timestamp recorded
    Published --> Revised: approved correction
    Revised --> FrozenInputs: rebuild from retained source state

How it works

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References