A rules-based, regime-switching leveraged ETF strategy that shifts between aggressive long bets in bull markets and hedging in bear markets, guided by price/trend and momentum signals with strict risk controls.

Think of it as a rule book that decides where to invest based on market mode. It first judges if the market is bullish or bearish using price trends and momentum signals. In a bullish regime, it concentrates funds in a few highly leveraged bets on growth/tech and semiconductors (like SOXL, TQQQ, TECL, UPRO) with built-in risk controls. In a bearish regime, it flips to hedges and safer or inverse positions (UVXY, SQQQ, related hybrids) to limit losses. It also looks at other assets (gold, bonds, cash proxies) to tune overall risk. Signals come from several look-back periods (1–200 days) and from a momentum-style score that compares recent gains to losses. If conditions don’t line up, capital stays in cash or low-risk assets. The system assumes small price slippage (0.5%) and enforces drawdown limits to avoid deep losses. The result is a dynamic, largely rules-driven tilt between aggressive long bets and protective hedges, not a single static investment.

Out-of-sample, this regime-switching strategy outperforms the S&P 500 on risk-adjusted returns: levered bets in up markets, hedges in down markets, delivering stronger upside capture with tighter drawdowns.