A two-part, rule-based system: core momentum on semis using RSI to time bets between SOXS (bear) and SOXL (bull) via SOXX signals, plus a defensive sleeve (Meat Shield) shifting into cash/bonds/hedges when risk rises. Includes overlays for the S&P and selective equity bets; uses fixed weights and multi-asset diversification to manage risk while targeting upside in semiconductors.

RSI stands for Relative Strength Index, a simple gauge that tries to tell you when a market has become unusually strong (likely to fall back) or unusually weak (likely to bounce). In plain terms: if momentum looks very hot, the system bets on a pullback; if momentum is weak, it bets on more upside. The core logic focuses on semiconductors: - Core trigger: compute the 10-day RSI for SOXX. If SOXX RSI > 75, the system tilts to the 3x bear semiconductor ETF (SOXS) to profit from a potential drop in semiconductors. - Alternative bull tilt: if the SOXX 10-day RSI condition isn’t met, the engine looks for a weaker short-term signal on semi momentum (e.g., a low 10-day RSI on the bull side using SOXL with a threshold around 57) and may tilt toward SOXL when conditions align. - Nested checks: some branches depend on very short-term momentum reads (e.g., 2-day RSI on SOXX) or on the relative momentum of related assets (e.g., other semis or related ETFs like SMH). - Position sizing: the system uses weighted allocations (e.g., “weight” blocks) and sometimes allocates to multiple assets within a given group, often with top/bottom selection within a pool to respect diversification and risk. - Risk off-ramps and hedges: when risk signals trigger (e.g., oversold/overbought extremes elsewhere, or correlations/volatility cues), the framework shifts toward safer assets such as short-term Treasuries (BIL), USD proxies (UUP, USDU), or even gold-related products (UGL) as a hedge. - Meat Shield module: a separate, lower-touch risk-control sleeve targets preserving capital with conservative bets (e.g., small exposure to cost and health-care names only when specific momentum and risk metrics align) and heavier cash/bond allocations. - Overlay rules: there are conditional rules for when to avoid equities (e.g., a rule like “Overbought S&P. Sell the rip. Buy volatility.” uses SPY RSI and then adds hedges via other assets). - Rebalancing and execution: the architecture shows a fixed rebalance policy (rebalance set to none in this example), with a defined corridor width for adjustments and a sparkgraph/visualization hook for performance storytelling. In short: it’s a momentum-driven semiconductor playbook with explicit hedges and a defensive sleeve, designed to participate in semi-strength while protecting against downside through a diversified asset mix.

Momentum-driven semiconductor strategy with built-in hedges. Out-of-sample return ~56.9% annually vs SPY ~20.6%, Sharpe ~0.97, Calmar ~1.10. Meat Shield risk-off sleeve limits drawdowns, aiming higher upside than the S&P 500.