A 60/40 tactical plan: rotate into the strongest sector ETF based on momentum, while the other 40% hedges risk with bond and volatility ETFs; signals use momentum/RSI and moving averages with daily rebalancing for adaptability.

The strategy splits the portfolio into two parts. About 60% goes to a Sector Rotator that scans traditional sector ETFs (e.g., Technology, Financials, Energy, etc.) and selects the single best-performing sector on recent momentum signals to overweight. The rest of the portfolio (~40%) is placed in a Hedge System that uses bond and volatility-related ETFs to protect against market drops, following its own momentum/RSI-style checks. A cash-like asset (BIL) is used as a safety sleeve when signals suggest risk is high. Signals come from simple ideas (momentum, relative strength, and moving averages) applied to a large set of assets, with many layered checks to reduce false positives. The plan is to rebalance daily, so holdings can shift as signals change. The result is a 60/40 blend of tactical sector exposure and hedging that aims to capture upside in strong markets while limiting downside in weak markets.

Out-of-sample return: 48.6% vs 21.6% for S&P; Sharpe 1.56 vs 1.20; Calmar 2.55 vs 2.00. A 60/40 mix: rotate into leading sectors and hedge with bonds/volatility for stronger upside and smoother drawdowns.