A daily, rules-based strategy that mostly buys QQQ during stock-market uptrends, but uses RSI and price-relativity tests against SPY to pull back into cash or SHY when signals weaken, aiming for higher returns with smaller drawdowns.

- Each day, the system decides how to allocate among cash, QQQ, and SHY. It keeps a cash buffer by default. - Step 1 (trend test): It measures SPY’s short-term vs. longer-term price trend using moving averages (21 days vs 210 days). If the 21-day average is higher than the 210-day average, the market is considered in an uptrend and the strategy goes fully or predominantly into QQQ (the Nasdaq-100 ETF). - Step 2 (if not in uptrend): The strategy looks at QQQ specifically in two ways. First, it checks a short-term momentum/stability condition: QQQ’s momentum indicator over 10 days is compared to a fixed threshold (30). If QQQ’s short-term momentum is below 30 (often interpreted as oversold/soft momentum), the next set of rules are consulted, otherwise the next branch is considered. - Step 3 (QQQ vs SPY signal): If the above condition is met, the system checks QQQ’s price situation relative to SPY over a longer window (31 days) and/or the current price versus SPY’s price. Depending on whether QQQ’s signal is stronger than SPY’s, it may allocate to SHY (bond exposure) as a hedge, or continue with cash and possibly reintroduce QQQ if other criteria align. - Step 4 (defensive hedge): In some branches, if QQQ looks relatively stronger or certain price thresholds are crossed, SHY is added to the mix to reduce equity risk when the stock market isn’t convincingly positive. - Step 5 (fallback): If weaker signals persist (or thresholds aren’t met), the model tilts toward cash or allocates to SHY to limit drawdown, rather than buying more of equity at weak signals. - Rebalance frequency: daily, meaning the positions can shift each trading day as signals evolve. - The design aims to adapt to regimes: riding uptrends with QQQ, and moving into cash or SHY when signals suggest risk or weakness. The explicit use of SPY as a market proxy helps ensure the strategy doesn’t purely chase Nasdaq strength without regard to broader market conditions.

Out-of-sample, this strategy targets ~33% annualized return vs 22% for the S&P, with higher Sharpe (~1.54) and Calmar (~1.70), plus cash/SHY hedges to limit drawdown while aiming for stronger upside than the S&P.