An aggressive, rule-based algo that toggles between leveraged growth bets and hedges based on market trend and volatility to chase big gains while aiming to cap downside.

FLOW STATE ALPHA is a momentum-driven algorithm with two modes. First, it checks the market’s mood using a long-term trend measure (the market’s price relative to its 200-day average). If prices are generally rising, the system is in Bull Mode and tilts toward high-momentum, leveraged bets (for example, 2x–3x ETFs that aim to follow big stock-market moves) and crypto-like proxies to amplify gains. If the market shows weakness or stress, it switches to Bear/Hedge Mode and moves into safer bets such as government bonds, gold, and inverse ETFs that tend to gain when stocks fall. How it decides what to hold: - Trend check: Is the market in an uptrend or downtrend? This is the primary switch for Bull vs. Bear. - Volatility and stress check: It watches volatility signals (via KMLM) and RSI readings to gauge overheating or panic; if risk is elevated, it reduces exposure to aggressive bets. - Momentum screen: Within the chosen mode, it looks at a wide set of assets and ranks them by recent performance, often preferring assets that have shown persistent strength (or weakness, in Bear mode). - Asset rotation: In Bull Mode, select a small, targeted group of leveraged equity exposures and some crypto proxies to ride momentum; in Bear Mode, rotate into Treasuries, Gold, and inverse/defensive positions to dampen losses. - Rebalancing: The allocation is reviewed and adjusted regularly (often daily) to reflect new signals, with explicit limits on how much leverage or risk is taken at any time. What you should expect in practice: - When markets are upbeat, the strategy aims for outsized gains by using leveraged bets. - When markets turn rocky, it shifts toward hedges to try to protect capital, though some drawdown is still possible due to leverage. - It’s explicitly labeled aggressive/speculative and requires ongoing monitoring and risk management. The system uses a broad set of signals and a nested decision structure to synthesize market signals across many assets, so it’s less about a single indicator and more about a coordinated, regime-aware approach to asset allocation.

Flow State Alpha uses regime-aware leverage and hedges to pursue big gains in up markets and shield capital in downturns. Out-of-sample testing suggests higher upside capture and controlled downside vs the S&P 500.