A high-velocity, regime-aware ETF rotation system that toggles among leveraged tech, volatility hedges, and a diversified long/short macro basket using momentum and macro signals. High risk, potentially large upside and drawdowns.

In plain terms: the system watches a large list of ETFs and levered/inverse funds. It runs a lot of momentum checks (how strong or weak a move is) over short windows (days to weeks) and some trend checks (price vs. moving averages). Based on those signals, it picks one of three broad modes: (1) a Tech-tilt mode using leveraged tech exposure (TECL) for upside when tech is strongest; (2) a volatility-hedge mode using inverse or levered volatility funds (like SVIX or UVXY) to defend against spikes in fear; or (3) a long/short macro rotator that combines bonds, currencies, and managed futures-like exposure (FTLS, KMLM, UUP, CEW, etc.) to capture broader market moves. Within the macro rotator, it ranks a basket of assets by momentum/volatility signals and selects the top or bottom few to hold, applying weights that emphasize strength while limiting risk. The “KMLM Switcher” acts as the decision broker among these modes, using signals like the relative strength of tech (XLK) vs the KMLM basket to decide which path to run. There are additional sub-strategies (e.g., “Pop Ups,” “Dead Cat Bounce,” “Junk Logic,” rate/bond tone, and crisis-type blocks) that trigger or suppress exposure under specific market conditions. The overall aim is to ride sustained trends when conditions are favorable while stepping to hedges or diversified baskets during volatility surges or regime shifts. Important caveats: high leverage, many moving parts, and reliance on backtested momentum signals mean higher risk and potential for large drawdowns; fees, slippage, and real-world execution will affect results.

Out-of-sample edge: Sharpe 1.43 vs 1.14, Calmar 2.83, and ~84% annualized return vs ~19% for the S&P, with beta ~0.89. Regime-aware ETF rotations and hedges target persistent upside while curbing risk during spikes—higher upside per unit risk, but with larger drawdowns and leverage.