invert_signal: Invert Signal Values for Preference Reversal

In PortfolioTesteR: Test Investment Strategies with English-Like Code

Invert Signal Values for Preference Reversal

Description

Transforms signal values using (1 - value) to reverse preference direction. Useful when high values indicate something to avoid. For example, inverting volatility makes low-vol stocks appear as high signals.

Usage

invert_signal(signal_df)

Arguments

signal_df

Data frame with Date column and signal columns

Value

Data frame with inverted signal values

Examples

data("sample_prices_weekly")
# Prefer low volatility stocks
volatility <- calc_rolling_volatility(sample_prices_weekly, 20)
stability_signal <- invert_signal(volatility)
# Select top 10 momentum stocks first
momentum <- calc_momentum(sample_prices_weekly, 12)
selected <- filter_top_n(momentum, 10)
# Weight by inverted volatility (low vol = high weight)
weights <- weight_by_signal(selected, stability_signal)

PortfolioTesteR documentation built on Nov. 5, 2025, 5:23 p.m.