A regime-driven, rule-based strategy that alternates between highly leveraged stock/tech bets and defensive bonds/dollar-commodity hedges, selecting the best short-term performers from many ETF baskets using momentum-like signals and RSI thresholds. It backtests to 2012 with strong historical numbers but carries considerable risk and complexity.

In plain terms: the system tests many possible baskets of ETFs that bet on market strength (like tech and broad stock indices using 3x leveraged funds) and hedges (bonds, dollar, commodities, volatility-based assets). It looks for the best short-term performers in each group and then buys that one asset (or tilts into a defensive set) with all-in exposure. Signals come from short-term momentum (how the asset performed over a few days), trend indicators (moving averages), and simple oscillator readings (like RSI, which gauges whether a price has been too hot or too cold). If the market looks risky or signals shift (for example, price action suggests weakness or a spike in volatility), the strategy rotates into defense: long Treasuries, short/bear ETFs, or dollar/commodity hedges (e.g., UUP, DBC, UVXY gating). The selection steps are nested into groups like “Long Backtest Slime,” “Bear Market – High Inflation,” “Defense,” and “Adaptive Asset Allocation” where each group contains sub-conditions that pick the strongest candidate from a pool using rules like sort by moving-average-return and pick the bottom/top one in a 5-day window. The result is a continuously evolving exposure that tries to ride uptrends with high-leverage bets but switch to safer assets or hedges when signals warn of trouble. Important caveats: leverage increases risk and drawdowns; the numbers quoted come from a backtest and may not reflect future results; execution, costs, and data delays can materially affect real performance.

Out-of-sample edge: ~33.6% annualized return vs ~23.2% for the S&P, driven by regime-driven leverage in uptrends and hedges in downturns. Higher volatility and drawdowns (~39%) are the trade-off for potentially stronger long-term growth.