A two-part, rules-based equity strategy: 60% is a dynamic sector-rotation engine with RSI/momentum signals and a volatility hedge; 40% is a regime-based overlay using SPY trend to pick ISPY/ECML or cash-tilt to BIL. No regular rebalancing; uses sector ETFs, hedging tools, and a conservative risk framework.

Two main parts: - 60% Sector Rotator: Checks momentum and momentum-related indicators on broad sector ETFs (Technology, Financials, Health Care, Energy, Materials, Telecom, Real Estate, Consumer Discretionary, Industrials, Utilities, Consumer Staples). It uses short-term RSI signals (e.g., RSI over 10 days) to flag overbought/oversold conditions and then selects the strongest sector to overweight. A volatility hedge using UVXY/ SVXY concepts is embedded, so risk spikes can prompt hedge-like moves or moving to cash-like positions. Within each sector, the top-performing sub-asset (often a single ETF or levered variant) is chosen using a moving-average performance screen (window around 200 days). The 60% sleeve is then allocated to that sector exposure (with explicit cash-equivalents when conditions trigger). There are explicit “wt-cash” steps showing portions allocated to cash-like positions under certain conditions, and the overall weight for this sleeve sits at 60/100. - 40% Regime Overlay: A simpler, trend-following rule. It looks at SPY’s relative price momentum via a 50-day vs 200-day moving-average test. If SPY is in an uptrend (50-day MA above 200-day MA), the system rotates into ISPY (S&P 500 High Income ETF) and ECML (Fundamental Value ETF) to capture potential upside in a rising market. If not, it shifts into BIL (short-term Treasuries) as a defensive, capital-preserving position. This sleeve is weighted 40/100 and uses a modest look-back (3 days for some signals) to decide on the ISPY/ECML versus BIL exposure. Rebalancing is set to none, with a small corridor width to avoid churn. It also blends two assets (ISPY, ECML) when the market is favorable, or leaves money in cash-like Treasuries when it isn’t. - Tickers and assets: The strategy trades broad sector ETFs (XLK, XLF, XLV, XLE, XLB, XTL, XLRE, XLY, XLI, XLU, XLP, etc.), leveraging leveraged or inverse volatility overlays (UVXY, SVXY) for hedging, as well as non-traditional assets (ISPY, ECML) for the 40% sleeve, and a cash proxy (BIL). The plan notes explicit weights and “top” selections, indicating a disciplined, rules-based approach rather than discretionary picking. The overall design aims to capture sector leadership when the market is healthy, while offering a protective overlay during volatility spikes and a regime-based fallback in downturns or uncertain times.

Out-of-sample, this strategy delivers higher risk-adjusted and total return than the S&P 500: Sharpe 1.46 vs 0.91; ~46% vs ~16% annualized; Calmar ~1.96. Sector-rotation with hedges seeks leadership and smoother downside.