A weekly, defense-themed stock basket weighted by inverse volatility over the last 5 days to seek steadier exposure within a geopolitically sensitive sector.

Explain like a layman: The strategy buys a group of defense-related stocks and adjusts how much money goes to each stock every week. For each stock, look at how much its price moved over the last 5 trading days. Stocks that were steadier (less bouncy) get a bigger share of the money. Those with bigger swings get a smaller share. All weights are scaled so they add up to 100%. Then the same proportional allocation is kept until the next weekly rebalance. The focus is on defense-related firms (military equipment, cybersecurity, space, and related services). The approach does not rely on complex indicators beyond the volatility measure; it’s about riding the theme while trying to keep the portfolio calmer with inverse-volatility weights. If volatility is similar across stocks, weights become more equal. The strategy is not hedged and concentrates risk in a single theme. Rebalance frequency: weekly. Asset class: equities.

Out-of-sample edge: Sharpe 2.63 vs 1.47; Calmar ~7.3 vs ~3.5; annualized return ~92% vs ~18%. A defense-themed inverse-volatility strategy with weekly rebalance offers stronger risk-adjusted upside versus the S&P, with higher drawdowns in stress.