Beta Hedge 3.0 uses Nasdaq momentum signals to switch between a levered tech tilt, volatility hedges, or a defensive core, with equal weights in the chosen group and no fixed rebalance schedule.

Beta Hedge 3.0 uses a simple decision tree driven by signals from the Nasdaq 100 (QQQ) to decide what group of ETFs to hold. If QQQ looks very weak (RSI below 30), it buys a leveraged tech ETF (TECL). If not, and QQQ looks very strong (RSI above 80), it buys a volatility ETF (UVXY). If neither condition holds, it checks whether the market has recently dropped hard (SPY drawdown > 5% in 10 days) and buys VIXM if true. If none of these triggers apply, it allocates cash evenly to a defensive/balanced set (BTAL, VIXM, IEF, GLD, XLP). If that branch isn’t invoked, it defaults to an alternate broad set (SCHD, GMOM, VAMO, SPY). The weights are kept equal within the active group, and there’s no regular, pre-set rebalancing schedule—adjustments happen when the signals fire. The aim is to tilt toward growth when things look oversold, hedge with volatility in riskier moments, or settle into a diversified defense when signals are mixed, all with a small buffering corridor to avoid churn.

Out-of-sample, Beta Hedge 3.0 delivers ~43% annualized return vs SPY’s ~22%, with strong risk-adjusted metrics (Calmar ~1.84, Sharpe ~1.26). Tactical tilts and hedges target higher growth, while expected drawdowns may be larger than SPY.