A short-term, inverse-volatility weighted portfolio of leveraged ETFs (85% of assets) with a 15% ballast in floating-rate Treasuries, using a 2-day lookback to tilt toward less volatile holdings. Includes TECL, BITU, TMF, RSST, DFEN, UTSL, VXUS, UGL, and ballast USFR; international is not leveraged due to lack of a leveraged international ETF. Rebalances are not calendar-driven.

What it is trying to do: capture short-term moves across a mix of leveraged asset classes while trying to keep risk in check by betting more on assets that have been calmer recently and adding ballast to the portfolio. How it does it: 1) Look back 2 trading days for each asset to estimate recent price volatility (how wild the moves have been). 2) Assign weights so assets with lower recent volatility get higher weights (inverse-volatility weighting). 3) The 85% of the portfolio goes into a basket of leveraged ETFs, including TECL (3x tech), BITU (2x Bitcoin), TMF (3x long Treasuries), RSST (stock+managed futures blend), DFEN (3x aerospace/defense), UTSL (3x utilities), VXUS (international stocks), and UGL (2x gold). 4) The remaining 15% goes into USFR, a floating-rate treasury fund used as ballast to dampen risk and provide some stability. 5) International exposure (VXUS) is included but not leveraged, because there isn’t a reliable leveraged international ETF option. 6) Rebalancing: not on a fixed calendar; weights are determined by the 2-day volatility signal. There is a small corridor width (0.01) that would normally trigger drift-based rebalancing, but the setup shows rebalance: none, so adjustments are not automatic on a schedule. What you should know: leverage magnifies both gains and losses; volatility-weighting can shift a lot in choppy markets; the ballast helps but won’t eliminate risk.

Out-of-sample edge: Sharpe ~2.88 vs 1.38, beta ~0.86, drawdown ~10% vs ~13%, and ~87% annualized return vs 28%—volatility-weighted leveraged ETFs with ballast aim to outperform the S&P 500 on risk-adjusted returns.