A rules-based, momentum-driven EM tilt with cash hedges and risk guards. It uses RSI and price-MA signals to switch between full EM leverage (via EDC) and reduced leverage, hedges with EDZ/BIL, and a SPY-based risk overlay, rebalanced daily.

- What it invests in: primarily EM exposure via EDC (bull 3x EM) with a cash hedge via BIL. In some cases it may layer bear exposure via EDZ or trim exposure to keep risk in check. - How it decides how much to own: a rules-based tree uses momentum signals (like RSI on EM ETFs) and price vs. moving averages to decide between full leverage (heavier EM tilt) or reduced leverage (lighter EM tilt). - How it uses momentum signals: one trigger checks if the EM momentum (RSI over a lookback) is very weak (RSI under 25). If so, the strategy buys a levered EM tilt (68% EDC) and keeps 32% in cash (BIL). This is the “Full lever” armed position. - How it adjusts with market context: other branches compare EM momentum to US-market momentum (SPY) and to other asset classes (IEI vs IWM; IGIB vs EEM) to decide whether to stay with EM, hedge, or switch to other exposures. Some branches push Bear EM (EDZ) or add a small-bear/defensive tilt if those cross-asset conditions are met. There are tests like price vs. 200-day moving average to decide if EM should be reinforced or dialed back. - Risk overlay and guardrails: a macro overlay reduces EM exposure to 1x below SPY’s 200-day signal, effectively shifting toward a less aggressive posture when the broad market weakens. The final rule-set often shows a net EM-related allocation around a mid- to low-40s percent when conditions are favorable; otherwise, it contracts risk. Rebalancing happens daily to keep the allocations faithful to the rules. - Asset mix summary: the model mixes EM equities (EEM/EDC/EDZ), US equities (SPY/IWM as relative signals), and bonds/cash proxies (IEI/SHV/BIL) to maintain a cash-efficient, momentum-driven stance with built-in hedges. Some branches also test cross-asset relationships (e.g., EM vs developed-market or tech-focused funds like IGIB) to fine-tune tilt based on relative strength. Overall, it aims to capture EM upside with leverage when signals are favorable, while protecting against drawdowns with cash and bear hedges and by dialing back leverage when the market deteriorates.

An EM momentum strategy with cash hedges that boosts risk-adjusted return vs the S&P 500. Out-of-sample Sharpe ~2.49 and Calmar ~9, near-zero SPY beta, with built-in risk guards and daily rebalancing to diversify and enhance upside.