A rules-based strategy that tries to be aggressive in good markets, buy sharp dips, and move to hedges, bonds, cash, or bearish funds when markets weaken or turn chaotic.

This strategy splits money into two halves: a simpler market-timing half and a more defensive hedged half. It mostly watches the S&P 500 (SPY) to decide if the stock market looks healthy or weak. In healthy periods, it often buys the Nasdaq or S&P 500, sometimes using turbocharged funds like QLD or TQQQ. After sharp drops, it may “buy the dip.” In weak or scary periods, it shifts into safer areas like short-term bonds, cash-like T-bills, consumer staples, or funds that rise when stocks fall. In extreme panic, it can buy a volatility hedge (UVXY).

Out-of-sample annualized return ~25% vs SPY ~21.6%, with a near-1.0 beta and Calmar ~1.16, offering stronger risk-adjusted upside. It tilts Nasdaq in rallies and hedges in downturns via regime-switching and volatility hedges.