A complex, rule-based rotation strategy that uses RSI-like signals, moving-average checks, and a wide ETF universe (QQQ, SPY, TQQQ, VXX, UVXY, SHV, etc.) to allocate among equities and hedges. It organizes bets into many groups and decides which assets to hold and in what weight, aiming for upside capture with volatility hedges. It also references KMLM as part of its signals.

The strategy runs a daily (or frequent) check of many signals across a basket of ETFs. It uses simple price tests (is the current price above/below a moving average? is momentum rising or falling?) and RSI-like metrics to classify markets as bullish, neutral, or bearish. Depending on which signals fire, it allocates weights to different assets, including leveraged equity plays (like TQQQ), standard equities (QQQ, SPY), and volatility/defensive hedges (VXX, UVXY, SVXY, SHV). Each “group” is a different possible portfolio configuration; the model picks among them by following a tree of if-then rules. The cash-weighting parts indicate capital is allocated in chunks to the chosen assets within each group, with various weights (sometimes 100%, sometimes partial). The system also uses a hierarchy of hedge logic (e.g., “Bear Market” or “Hedge”) to tilt toward hedges if risk is high, or toward equity exposure if risk is low. It sometimes compares the price of less-popular ETFs like KMLM to moving averages and other signals to influence decisions. The final portfolio is a mix of equities, leveraged bets on equities, and hedges, designed to chase upside while trimming risk during drawdowns. If you’re new to this, imagine a very elaborate rulebook that constantly asks: “What should we own right now, and how much?” and then moves money among many ETF ideas based on those tiny signals. The exact tickers and thresholds are numerous and tailored, so a beginner might prefer a much simpler version first.

Out-of-sample proof: this strategy limits drawdowns (7.3% vs 18.8% SPY) and offers strong risk-adjusted gains (Calmar ~1.73) with a diversified mix of equities, leverage, and hedges—often smoother than the S&P 500.