A daily, multi-block, correlation-aware strategy that builds a 100% diversified, risk-managed portfolio from ETFs (including leveraged and inverse funds). It ranks assets by momentum and risk within blocks (Volatility/Hedging, Equities, Bonds, Commodities, Energy), applies volatility hedges during stress, and allocates weights across blocks to pursue upside with drawdown control.

Every day the model screens a broad universe of ETFs and levered ETFs, groups them into blocks (Volatility/Hedging, Equities, Bonds, Commodities, Energy, and thematic rotators). Within each block, assets are ranked by momentum and risk measures (e.g., how strong returns look over recent windows, and how volatile or how deep their drawdowns have been). The top assets from each block are selected and combined with hedges (SVXY, VIXM, UVXY, SPXU, etc.) to protect against rising volatility. The blocks are then weighted to total 100% exposure, with weights varying by block (e.g., tech/rotation, risk-off hedges, commodity and energy exposures). The system rebalances daily, seeking to tilt toward assets with strong momentum and favorable risk metrics while maintaining diversification through correlation-aware hedges. In plain terms: it picks a mix of growth, hedges, and diversifiers that behaved well recently, leans on hedges when volatility spikes, and periodically rotates into new leaders to keep the overall portfolio from moving together with a single market regime. Note: the approach relies on leveraged/inverse funds, which increases both upside potential and risk; it’s designed for sophisticated investors who can tolerate complexity and higher turnover.

Out-of-sample, a safer ride: drawdowns 13.2% vs 18.8% for the S&P, Calmar ~0.53, and diversified, correlation-aware hedges across blocks. It seeks steady upside with resilience, offering risk control plus potential upside.