A dynamic, rules-based strategy that uses leveraged equity ETFs and volatility/short hedges to chase upside in favorable markets while trying to protect against downturns, with a year-end wash-sale-aware touch to keep taxes in mind.

- What you’re looking at are rules that tell the system how to move money between a family of ETFs. ETFs are funds that track baskets of stocks; some are the plain S&P 500 or Nasdaq 100, some are leveraged (aiming to move 2x or 3x the daily move), and some are designed to go opposite the market (shorts). For example: UVXY is a volatility-related ETF used as a hedge when market fear is high; SPY tracks the S&P 500; QQQ tracks the Nasdaq 100; TQQQ is a 3x leveraged version of QQQ; UPRO is a 3x leveraged S&P 500; TECL is a 3x leveraged technology-focused ETF; PSQ is inverse to QQQ; SH is inverse to the S&P 500; SHV, BIL, IEF, TLT are bond/short-duration equivalents. The core logic uses several signals to decide which sleeve to run: momentum signals (relative strength / RSI) tell the system when a stock or ETF is overbought or underowned relative to another. Trend signals (price vs moving-average checks) tell it whether a market uptrend is likely to continue. Regime signals (named groups like Bear Market Sideways Protection) represent combinations of conditions that historically occurred in “sideways” or choppy markets, guiding the system to shift to hedges and more cautious allocations. There are nested decision layers (if-then structures) that decide specific actions like: - Enter or increase exposure to leveraged equity bets (TQQQ, UPRO, TECL) when momentum and price-trend conditions are favorable. - Move into hedges (UVXY, PSQ) or into bonds when momentum weakens or risk signals become extreme. - Use depth of exposure (weights) and sometimes group-level sub-portfolios (e.g., “Sometimes TQQQ”) to diversify risk and avoid over-concentration on a single signal. - Apply a year-end wash-sale modifier to adjust trades so they don’t violate wash-sale rules in December while preserving risk/return posture. In plain language, it’s like a multi-gear car that automatically shifts between high-acceleration modes (leveraged bets) and safety modes (hedges and bonds) depending on what the signal weather looks like, with a tax-aware tweak at year-end. Important caveats for a layman: this is a complex, high-turnover strategy that uses leverage and timing signals; it can underperform in calm markets or incur sharp drawdowns if signals misfire; there is no guarantee of profits, and it assumes you’re comfortable with frequent adjustments and the risk characteristics of leveraged ETFs.

Out-of-sample edge: ~56.7% annualized return vs 14.8% S&P; Sharpe ~1.14 vs 0.83; Calmar ~1.51. Dynamic leverage plus hedges seek bigger upside with risk controls and tax-aware year-end tweaks (note: higher drawdowns in downturns).