A daily, regime-driven equity strategy that first detects inflation or deflation, then the market’s risk mood, and finally selects a diversified mix of long/short ETF exposures with hedges based on momentum/volatility signals.

Step 1: Identify regime — inflation vs deflation using price/bond signals. Step 2: Determine risk environment — risk-on or risk-off under that regime using momentum/volatility checks across a broad set of assets. Step 3: Select exposures — construct a mix of long and short positions from a pool of ETFs and related assets to reflect the regime and risk mood. Step 4: Signal logic — signals come from momentum indicators (how recently and strongly prices moved) and volatility/context signals (how volatile prices are, whether they’ve reached overbought/oversold extremes). Step 5: Implementation — allocate and rebalance daily, with hedges (e.g., VIX-related or inverse/levered funds) when risk spikes or regime shifts. Step 6: Examples — buy tech/megacap growth themes (QQQ/MGK), cycle/sector exposure (XLY, XLP, XLI, ITB), bond/defense (TLT, GLD, XLE), and use hedges like VIX-related funds to limit drawdowns. Step 7: Goal — maintain an equities-oriented, regime-appropriate mix that adapts to inflation/deflation dynamics and market risk conditions.

Regime-driven, daily-rebalanced strategy adapts to inflation/deflation and market mood, reducing drawdowns (3.26% vs SPY 5.07%) while delivering solid oos risk-adjusted returns (Calmar 2.14, Sharpe 0.95) and ~6.98% annualized.