A daily 2-asset rotation: if CAOS has gained more than ~2% over the last 7 days, invest 100% in QQQ; otherwise invest 100% in CAOS. The idea is to chase growth when CAOS signals strength, and switch to CAOS’s hedging exposure when CAOS hasn’t shown short-term strength. Simple, binary, and fully allocated to a single ETF each day (no diversification within the rule).

- Every day, evaluate CAOS’s performance over the last 7 days. - If CAOS’s 7-day cumulative return > 2%, allocate 100% to QQQ (Invesco QQQ Trust Series 1). - If CAOS’s 7-day cumulative return <= 2%, allocate 100% to CAOS (Alpha Architect Tail Risk ETF). - Rebalance is daily, and at any time you hold in effect either QQQ or CAOS only (no diversification to other assets in this rule). - The approach uses a simple, hard threshold rather than a probabilistic or multi-factor model. The goal is to ride growth when CAOS has recently done well and preserve risk protection when CAOS hasn’t. - Exposures are purely equity-based (QQQ is growth-oriented; CAOS provides tail-risk hedging). The design aims to outperform a cash proxy by tactically choosing between two equity-related instruments. - This is a high-concentration, conditional tilt rather than a diversified portfolio, so expect higher idiosyncratic risk relative to a broad market mix.

Out-of-sample: a 2-asset rotation (QQQ/CAOS) delivering superior risk-adjusted return vs SPY — Calmar 4.28, Sharpe 2.08, max drawdown under 1%, and near-zero beta—great downside protection with steady upside potential.