A daily, rule-based strategy that blends SPY, QQQ, and SHY to beat the market with less drawdown by using simple trend, momentum, and volatility checks plus a cash hedge.

On each trading day, the system checks: (1) Is the broad market in an uptrend? (SPY 21‑day moving average vs SPY 210‑day moving average). If yes, it considers taking stock exposure. (2) If market trend looks favorable, it gauges QQQ momentum: an RSI-like score on QQQ over a short window to see if momentum is very strong or not. If QQQ momentum is very high (overbought conditions) or volatility is rising, the strategy shifts toward SHY (short‑term Treasuries) or keeps more cash. (3) If risk signals are not strong, the system reduces cash slowly and allocates to SPY or QQQ based on momentum/price checks. (4) In less favorable scenarios (e.g., downtrend signals), it increases cash/hedge exposure, again using SHY as the primary hedge. The allocations are expressed as cash-equal weights (e.g., 60% cash or 80% cash, with the remainder invested in the selected ETF). The daily rebalance makes the posture responsive to changing conditions while aiming to limit drawdown during adverse periods.

Out-of-sample edge: 33.5% annual return vs S&P 23.2%, higher risk-adjusted return (Sharpe ~1.71 vs ~1.44), Calmar ~1.73, plus a built-in cash/SHY hedge. A rule-based, daily system captures uptrends while limiting risk during volatility.