Daily strategy: if volatility momentum (VIXM) is high (RSI > 69), go 100% short the S&P 500 via SPXU. Otherwise, pick the single strongest momentum asset among MSFU, NVDA, and XOM (by 40-day RSI) and invest 100% there. A levered/volatility-driven, single-asset tilt with daily rebalancing.

What is RSI? RSI is a simple score from 0 to 100 that tries to tell you if an asset’s price has been moving up or down recently and how strong that move is. Higher numbers mean stronger recent gains; very high numbers can hint at a pullback coming. In this strategy, RSI is calculated on a couple of things and used as a decision rule. Step 1 — Volatility regime: Look at VIXM, an ETF that tracks market volatility (fear). Compute its RSI over the last 40 days. If RSI > 69, the plan is to be defensive: buy SPXU, which is designed to go up when the S&P 500 goes down (it’s a leveraged inverse bet). In other words, if volatility momentum looks very strong, expect the market to struggle and tilt toward a bet against the market. Step 2 — Momentum tilt when volatility isn’t extreme: If the volatility RSI is not above 69, look at three other assets—MSFU (a levered bet on Microsoft), NVDA (NVIDIA), and XOM (Exxon). For each, calculate RSI over the last 40 days and pick the one with the strongest momentum (the top RSI). Allocate all capital to that single asset (MSFU, NVDA, or XOM). This is a momentum-following choice: ride the asset that has shown the most recent strength. Rebalance: Daily. Cash is allocated equally within the chosen group, but you end up with 100% of the portfolio in the single selected asset each day. Ticker explanations: - SPXU: ProShares UltraPro Short S&P500, a -3x S&P 500 inverse ETF. - MSFU: Direxion Daily MSFT Bull 1.5X Shares ETF, levered long MSFT. - NVDA: NVIDIA Corporation, a stock. - XOM: Exxon Mobil Corporation, a stock. - VIXM: ProShares VIX Mid-Term Futures ETF, tracks volatility futures.

Out-of-sample, this rule-based strategy targets higher upside by riding the top momentum asset or hedging with SPXU during volatility spikes. It shows ~33.8% annualized return vs 23.4% for the S&P, but with larger drawdowns.