Azqato’s Long Backtest Switchboard is a daily-rebalanced, multi-basket tactical system that uses a broad universe of leveraged/inverse ETFs, volatility hedges, and other assets. It combines momentum and mean-reversion signals (RSI, moving averages, cumulative returns) to select and weight assets, with hedges from VXX-like products and bonds to control risk. It’s tax-conscious (No K-1) and reports strong backtest AR with controlled drawdown through diversified, signal-driven baskets.

- It builds many small baskets (groups) of assets from a large universe that includes leveraged ETFs (e.g., TQQQ, TECL, SOXL), inverse ETFs (e.g., SQQQ, SPXS, TECS, SOXS, SPXU), volatility proxies (VXX, UVXY), bonds (TLT, SHY, AGG, BIL, GLD, IEF), commodities (PDBC, DB, OILK), and international funds (EFA, EEM, EWZ, EPI). - Each basket is governed by a set of layered rules that pick assets to buy (top performers) or to short/hedge (bottom performers or hedged groups) based on signals like relative strength (RSI), cumulative returns, and moving-average performance over short windows (days to weeks). - The selection is performed with “top” or “bottom” picks and can require multiple assets to satisfy several filters before being included, with typical weights around 100/100 for each chosen asset within a sub-basket. - Many decision nodes implement risk hedging: if certain indicators look stretched (e.g., high RSI on VXX signals or overbought long-term Treasuries), the strategy pivots toward hedged or defensive legs (e.g., bonds like SHY/TLT, TLT-driven TMF, or volatility instruments). - The daily rebalance updates all baskets, re-evaluates indicators, and rebuilds holdings to reflect the latest readings; the backtest metrics shown (AR, drawdown) reflect performance across these many conditional baskets. - The strategy aims to exploit momentum and mean-reversion in a broad, levered, tactical framework while attempting to dampen downside via volatility and fixed-income hedges. The presence of many nested conditionals and a large universe means the same macro tilt can be achieved via different asset mixes on different days, depending on signals.

Out-of-sample annualized return ~34.5% vs SPY ~21.8%, with broad diversification, no-K-1 taxes, and hedges to damp drawdown. Higher upside and active risk controls can outperform in momentum/mean-reversion regimes, despite higher drawdown risk.