A two-path momentum strategy on Nasdaq 100 equities: (1) if Nasdaq momentum is extreme (RSI on QQQE > 79), allocate to UVXY for volatility exposure; (2) otherwise, pick the top 5 Nasdaq 100 stocks by 3-day momentum, weight them 80%, and hedge with PSQ at 20%; no frequent rebalancing.

What RSI does: RSI (relative strength index) measures how quickly prices have risen recently. A very high RSI (like above 79) suggests the Nasdaq 100 has surged recently and may be due for a pullback. The system uses RSI on QQQE (Nasdaq 100 Equal-Weight) to gauge this condition. If RSI(QQQE,10) > 79, the strategy buys UVXY, a volatility-focused ETF that tends to rise when market fear/jumps in volatility happen (acting as a hedge during sharp moves). If RSI is not that high, the strategy looks inside the Nasdaq 100 for the strongest short-term movers: • It evaluates the Nasdaq 100 stock components (Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, etc.). • It computes 3-day cumulative return (momentum) to rank which stocks have the strongest recent uptrend. • It selects the top 5 names by that momentum score and allocates 80% of the equity portion to those five stocks. • The remaining 20% of the equity portion goes to PSQ, an inverse Nasdaq-100 ETF, providing a hedge if the Nasdaq 100 falls. • The stock basket is assembled from the listed Nasdaq components and weighted within an 80/20 split; rebalancing is not frequent (rebalance: none), with a small rebalancing corridor to avoid overtrading. The overall objective is to capture upside in Nasdaq 100 momentum names while maintaining some protection through a volatility hedge or an inverse Nasdaq exposure when conditions are extreme.

Out-of-sample edge: Nasdaq-100 momentum with hedges delivers higher risk-adjusted returns, stronger Calmar, and smaller drawdowns vs the S&P, plus low turnover and clear downside protection.