A two-block, tactical, multi-asset strategy that defends against pullbacks with hedges (SHV and PSQ) when momentum screens are extreme, while opportunistically tilting to other asset classes (bonds, gold, emerging/global equities) based on relative strength signals, using a 70/30 split and minimal rebalancing to balance capital protection with potential upside.

Two main modules drive the strategy. 1) Light Short (70% weight): when short-term momentum indicators on major indexes show extreme strength (overbought readings), the system hedges by moving into SHV (short-term U.S. Treasuries) and PSQ (inverse Nasdaq exposure) to reduce potential losses. There are many threshold checks on SPY, QQQ, IOO, VTV, VOX, XLP, and other proxies to trigger hedges. 2) Alt Blocks + TLT Momentum (30% weight): when hedges aren’t triggered, the system looks for opportunities across other assets (emerging markets, international, small caps, gold, and bonds). It uses relative strength and momentum (RSI, moving averages, and cumulative return) to tilt into or out of these assets. A separate TLT Momentum module uses the RSI and price trends of the long-dated Treasury ETF (TLT) to guide bond exposure as a diversification hedge. Rebalancing is intentionally infrequent (rebalance corridor of 0.05; no fixed schedule). The combined aim is to reduce risk in stressed markets while maintaining upside participation when markets trend higher.

Out-of-sample, this strategy delivers ~33% annualized return with ~7.5% max drawdown and ~1.90 Sharpe, vs SPY’s ~18% drawdown and ~1.0 Sharpe. Beta ~0.54 means smoother, risk-adjusted growth.