A binary, signal-based rotation between SVXY (volatility-related) and BIL (short-term Treasuries) driven by KMLM’s 10-day return and SVXY’s 20-day max drawdown; it allocates 100% to the chosen asset and avoids scheduled rebalancing.

Plain-language description: 1) The system looks at two numbers: KMLM’s return over the last 10 days, and SVXY’s worst drop over the last 20 days (a negative number). 2) If KMLM’s 10-day return is more negative than SVXY’s 20-day worst drop (using a fixed threshold of -2), the model signals to buy SVXY. 3) If that condition is not met, the model signals to buy BIL (short-term Treasuries). 4) When a signal fires, you allocate 100% to the chosen asset (no partial weighting), with a small margin to avoid overtrading (corridor width of 0.1). 5) There is no fixed calendar rebalancing; switches occur when the signal criteria are met. The overall aim is to move toward SVXY in riskier moods (volatility-driven environment) and toward BIL when risk is judged higher or uncertainty is lower, using KMLM as the key information input and SVXY as the instrument sensitive to volatility, while BIL provides liquidity and capital preservation. Note: KMLM is an obscure ETF used here as a signal source; SVXY and BIL are well-known instruments with very different risk profiles.

Adaptive 100% rotation between SVXY and BIL using a simple rule. Out-of-sample drawdown 10.4% vs SPY ~18.8%, market beta ~0.48, Calmar ~1.13, and ~11.7% annualized return—stronger risk control and steadier, resilient performance vs the S&P 500.