A 60/40, rules-based blend: 60% goes to a momentum-driven Sector Rotator that picks the strongest stock sectors (using ETFs like XLK, XLF, etc., and sometimes leveraged sector plays), while 40% runs a Hedge System that uses volatility and bond-related hedges to protect against downturns. The system rebalances daily and relies on RSI, moving averages, and momentum screens to decide where to invest and how to hedge.

- The portfolio is split 60/40: 60% goes to a Sector Rotator (dynamic sector bets) and 40% goes to a Hedge System (defensive overlay). - Sector Rotator: looks across 11 major equity sectors (Technology, Financials, Health Care, Energy, Materials, Telecom, Real Estate, Consumer Discretionary, Industrials, Utilities, Consumer Staples) using ETF proxies (e.g., XLK for tech, XLF for financials, etc.). It screens these sectors for momentum (price trends over a multi-month window, typically using moving averages or similar momentum measures) and tends to allocate to the top-performing sector (often including opportunities in leveraged sector ETFs like TECL for tech). The result is a concentrated exposure to the strongest sector(s) based on the momentum screen, rather than a broad equal-weight or market-cap approach. - Hedge System: acts as a defensive overlay. It uses signals related to volatility (UVXY, SVXY, VIX futures), bond and treasury exposure (TMF, TMV, TLT, BND, SHV), and selective short exposure to the broad market (e.g., PSQ, SHV in some layers). Signals combine RSI (relative strength index) over specific lookbacks (e.g., 10 days for some assets, longer for others), moving-average price comparisons, and cumulative returns to trigger hedges or shifts between equities and hedges. - Daily rebalance: the system recalculates signals and rebalances every trading day, adjusting the mix between sector exposure and hedges. - Risk and leverage: the inclusion of leveraged ETFs (e.g., TECL, TMF, TMV, DUSL, TQQQ) and volatility-related funds (UVXY, SVXY) aims to magnify momentum gains and add hedges, but it also introduces higher volatility and risk, requiring careful risk tolerance and monitoring. The approach is best understood as a rules-based blend of a momentum-driven sector tilt with an active risk-management overlay, rather than a simple buy-and-hold or static allocation.

Out-of-sample, this 60/40 momentum-hedge strategy targets ~83% annualized return vs ~21% for the S&P, with Sharpe ~2.16 vs 1.18 and Calmar ~4.36. Higher upside with built-in hedging; max drawdown ~19% vs ~18.8% for the S&P.