When energy is trending up, hold five big oil stocks from a set list. When it’s not, hold one defensive ETF (bonds or defensive sectors), chosen as the most recently oversold. Checks and rebalances daily.

Each day, it checks if XLE (a fund of big US energy stocks) is above its 20‑day average price. That average is just the typical price over the last 20 days; above it = uptrend. If uptrend: it picks 5 large oil companies from a preset list by ranking their recent average share price and taking the five lowest, then splits money evenly across them. If not: it moves into one “safer” fund (bonds or defensive sectors like staples, health care, utilities). It picks the single fund with the lowest 10‑day RSI, a score of how hard prices have recently moved; low means it has fallen a lot and may bounce. Rebalanced daily.

Out-of-sample results show this strategy shines in energy uptrends with a five-oil-stock basket and defends during pullbacks with one safe ETF, aiming for better risk-adjusted returns and smaller drawdowns than the S&P 500.