When markets look overheated by a simple 0–100 “hotness” score (RSI), the strategy goes all‑in UVXY to catch a volatility spike after a pullback; otherwise it sits in SHV (T‑bills). It’s an event‑driven, contrarian switch using broad and tech‑heavy signals.

It watches how “hot” the market is using RSI (a 0–100 score of recent price strength; high = overheated). If several big‑market and tech/sector funds (SPY, TQQQ, TECL, SOXL, VOX, XLY, etc.) look extremely hot (RSI ~85–97), it buys UVXY—an ETF that jumps when stocks stumble and volatility spikes. Otherwise it parks in SHV (short‑term T‑bills). In some cases it also checks UVXY’s own trend and avoids it when volatility is weak.

Risk-managed overlay with strong downside protection: OOS drawdown ~4.2% vs SPY ~18.8%, Calmar ~0.50 and Sharpe ~0.57. Modest OOS return (~2.1%), but steadier risk-adjusted performance and diversification beyond the S&P 500.