Daily ETF Rebalancer moves among leveraged Nasdaq/tech ETFs, hedges volatility with VIXY/UVXY and Treasuries, and rebalances daily. It uses momentum, mean-reversion, and volatility signals to decide positions and cash.

What this strategy does in plain terms: - It rebalances every trading day across a wide set of ETFs, mostly leveraged stock/tech plays (examples include TQQQ, UPRO, TECL, SOXL, SOXS, SMH, QQQ, SPY) and a diversity of bond/cash proxies (BIL, SHV, IEF, TMF, TLT, BND), plus volatility hedges (VIXY, UVXY, SQQQ). - It starts from a cash-like base and then decides what to own and how much cash to keep, based on a bundle of signals. Some signals measure momentum (is a price trending up or down? is current price above a moving average?), others measure risk (how volatile are things? how close are we to a maximum drawdown?). A few look for mean-reversion (is a leveraged ETF oversold and due for a bounce?). - Indicators and rules explained in simple terms: - RSI (Relative Strength Index): a gauge of momentum. If RSI is high (e.g., above 70-80) the asset may be overbought and due for a pullback; if RSI is low (below 30-32) it may be oversold and could bounce. The strategy uses RSI on proxies like TQQQ or SPY to time entries/exits. - Moving-average price: compares current price to a recent average. If the price is above the moving average, it suggests positive momentum; if below, momentum may be weaker. - Cumulative return: tracks how much an asset has gained or lost over a recent window. It helps decide if an asset is already stretched or due for a mean reversion. - Max drawdown: how far the asset has fallen from a peak. Large drawdowns push the plan toward hedges and safer assets. - Standard deviation/volatility sort: used to rank or select top assets by how volatile they are, often with a top-N approach to build a diversified, risk-aware lineup. - Core risk controls and hedging: - When risk indicators light up, the plan increases cash positions and buys hedges like VIXY (a volatility-related ETF) and short-term Treasuries (BIL/SHV) to dampen drawdowns. - There is a specific path called UVXY Replacement that shifts hedges depending on signals, switching between UVXY (a leveraged volatility product) and VIXY plus Treasuries. - If the market looks calm, the strategy leans into leveraged growth plays (TQQQ, UPRO, TECL, SOXL) to try to capture big upside in a strong regime. - How it selects and weights assets: - The system builds groups (think of them as candidate “baskets” or themes) such as “Oversold – TQQQ” or “Mean Rev” and then applies filters like moving-average checks, RSI thresholds, and relative performance. - It often uses a top-N or select-top approach to pick a subset of assets to hold, aiming to balance the desire for upside with the need to keep risk in check. - Overall risk/return profile: - This is an aggressive, tactical approach. It uses leverage to amplify returns when conditions are favorable but guards with volatility hedges and cash during riskier periods. The many nested decisions mean it adapts to changing regimes, but it can experience sizable drawdowns if risk controls fail or moves go against the leveraged bets. - Sectors and assets exposed to: - Tech/High-growth: TQQQ (3x Nasdaq), UPRO (3x S&P 500), TECL (3x tech), SOXL (3x semiconductors), SOXS (short semiconductors), SOXX/SMH (semis), QQQ (Nasdaq ETF), SPY (S&P 500 ETF). - Bonds and cash proxies for ballast: BND (broad bonds), IEF (intermediate-term), TLT (long-term), TMF (leveraged long-term Treasuries), BIL and SHV (short-duration Treasuries). - Volatility hedges: VIXY (Volatility futures proxy), UVXY (2x leveraged volatility), SQQQ (inverse QQQ, 3x levered inverse). - In short: it’s a daily, rule-based, multi-asset portfolio that tries to ride leverage in growth areas while protecting capital with volatility hedges and Treasuries, switching gear as signals change. It’s not a simple buy-and-hold strategy and requires careful risk tolerance and monitoring.

Out-of-sample, this strategy targets ~30.7% annualized returns vs ~20.6% for the S&P, with adaptive tech leverage and hedges (volatility futures and Treasuries) designed to capture upside while managing risk for risk-tolerant investors.