A daily, rules-based strategy that guards against big stock-market losses by toggling between risk-on stock baskets and risk-off hedges, using SPY drawdown, momentum signals, and levered ETF overlays to seek upside with controlled risk.

Here's the idea in plain language: the system watches SPY (the S&P 500 fund) to decide if we should be in the market or in cash/hedges. If SPY isn’t in a deep pullback, the strategy goes “Risk On” and places capital into a carefully chosen basket of well-known stocks (e.g., big names like AAPL, MSFT, NVDA, GOOGL, AMZN, TSLA, etc.), aiming for steady upside. If SPY shows a larger drop, the system switches to “Risk Off” and shifts into a different set of assets that tend to be more defensive or diversify risk (including cash when appropriate). Decisions are made every day. In addition, it layers in leverage-like bets (QLD for Nasdaq exposure, TQQQ for Nasdaq-100) and hedges (UVXY, other assets) only when momentum and price signals line up, with several guardrails to limit risk. The selections use simple inputs you can recognize (price history, moving trends, and a momentum gauge called RSI) to rank thousands of stocks and ETFs, then pick a subset to invest in. Overall, it combines a capital-protection rule with opportunistic equity exposure and occasional hedges to try to reduce big losses while still pursuing gains.

Out-of-sample, this strategy targets higher upside and risk-adjusted returns vs the S&P 500: annualized 59.7% vs 35.6%, Sharpe 2.96 vs 2.72, Calmar 6.23. Daily risk-on/off rules with hedges seek growth while limiting losses.