A daily, rule-based system that toggles between leveraged equity bets (SOXL/TECL/TQQQ/SPXL/UPRO/QLD) and volatility/defensive hedges (UVXY/VIXY/SQQQ/TMV/GLD/BIL/SHY/UUP) based on momentum, trend vs SPY, and volatility signals.

In plain terms: the strategy is a daily-rebalanced, rule-based system that looks at many signals to decide whether to chase risk-on bets (levered bets on tech/semiconductors and broad market momentum) or shift into risk-off hedges (volatility products, inverse/short ETFs, and safe bonds/cash). It uses a hierarchy of signals (price trends vs SPY, momentum measures like moving averages, and momentum strength like RSI) to pick a small set of ETFs for the day. It often selects the top candidate(s) from a group using a momentum or return-based score, then assigns weights (often full exposure to the chosen basket) and rebalances daily. The model explicitly rotates into leveraged long exposures (SOXL, TECL, TQQQ, SPXL, UPRO, QLD) when broad market momentum and regime signals are bullish, and into hedges (UVXY, VIXY, SQQQ, SPXS, TMV/TMF, GLD, SHY, BIL, UUP) when signals indicate overbought conditions, a downtrend, or rising volatility. It also uses defensive subsets (defense, defense modified, and various “Bear/Defense” modules) that tilt toward less volatile or negatively correlated assets if volatility, rate expectations, or correlations suggest increased risk. The design leans on simple, interpretable ideas (momentum, trend vs SPY, volatility hedges) but implements them through a very large, nested decision tree that can produce many potential asset combinations depending on the signals observed. The plan is daily rebalance, with fixed weights in many branches, and a strong bias toward using 3x leveraged vehicles for momentum bets and volatility/defensive hedges for risk control.

Adaptive, rule-based strategy tilts to leveraged equity bets in up markets and hedges with volatility/defensive assets in risk-off periods. Out-of-sample: ~47% annualized return vs SPY ~22%; Calmar ~1.19, with higher drawdowns but stronger long-run growth.