A “fire-and-forget” tactical plan: hedge with UVXY when Nasdaq looks too hot, move to UUP when the market looks weak, otherwise split between the two leveraged ETFs that had the gentlest recent declines to keep returns while dialing down swings.

It’s a rule-based switch. First, it checks a short-term “heat gauge” on the Nasdaq 100 (QQQ). If it’s extremely hot, it flips into a volatility fund (UVXY) to brace for a pullback. If the broad market (SPY) looks weak, it hides in the US dollar (UUP). Otherwise, it holds the two leveraged funds that had the smallest recent peak-to-trough drops, splitting money evenly between them. RSI (the “heat gauge”) reads how fast prices have been rising or falling on a 0–100 scale: very high = running hot; very low = looking weak.

Out-of-sample edge: ~40.8% annualized return vs S&P 18.0%, higher Sharpe (1.44 vs 1.01), lower drawdown (14.6% vs 18.8%), and beta ~0.57. A rule-based, tactical rotation that targets upside with smaller drawdowns than the S&P.