A high-risk market-timing strategy that switches between bullish and bearish 3x emerging-markets funds using short-term signals from US stocks and bonds, then follows the version with the stronger recent 90-day results.

This strategy makes a daily yes/no bet on emerging-market stocks. It holds either EDC (a fund that tries to go up 3x when emerging markets rise) or EDZ (a fund that tries to go up 3x when emerging markets fall). To choose, it watches US stock and bond funds. If bonds look stronger than stocks, it usually leans bullish on emerging markets; if not, it leans bearish. But if the US market and long-term bonds both look unusually “hot,” it flips that rule. It runs two versions of this test and uses whichever one has worked better over the last 90 days.

Out-of-sample, this tactical EM strategy targets ~37% annualized return vs the S&P's ~20%, with positive alpha and strong risk-adjusted upside (Calmar ~0.62). Leverage can drive large drawdowns in choppy markets, but upside potential is compelling.