Layered momentum system using RSI signals to trade semis (SOXX/SOXL/SOXS), hedge with volatility (VIXM), pick levered tech bulls (TECL/TNA/SPXL) or a top-3 stock basket from big names. Signal-driven, levered exposure, with volatility hedges and stock picks based on 46–45 day momentum.

- The system looks at semiconductors first. It watches SOXX (a semiconductor index ETF) and its related 3x leveraged products: SOXL (bull) and SOXS (bear). Depending on short-term momentum (RSI) readings, it decides which of these to favor. If SOXX looks extremely strong (RSI over 73 on a 10-day window), the strategy tilts toward the bear semiconductor ETF (SOXS) to potentially profit from a pullback. If SOXX isn’t triggering that signal, it then checks whether SOXL is very weak (RSI below 57 on a 14-day window) and would favor the bull semiconductor ETF (SOXL) in that case; otherwise it may tilt toward SOXS again. If none of these momentum signals fire, the algorithm may hold a cash-equivalent position for that segment. - A volatility hedge layer checks whether the broad market is showing extreme momentum (via SPY RSI). If SPY’s momentum looks extremely strong (RSI over 77 on a 14-day window), it adds VIXM (a volatility futures ETF) to hedge potential volatility spikes. - A risk-on block then evaluates two potential high-momentum, levered market-bull bets. It looks at three leveraged bulls (TECL, TNA, SPXL) and, using a 45-day lookback, picks the top two based on how much they’ve gained, assigning them modest weights (about 10% each). This provides a stronger bullish tilt when conditions are favorable. - If the leverage-bull block isn’t triggered, the system switches to a high-conviction stock-pick mode. It pools a broad set of well-known large-cap names (like MSFT, AAPL, NVDA, TSLA, GOOGL, META, AMZN, etc.), ranks them by momentum (RSI) over roughly 46 days, selects the top three, and assigns them a heavy weight (about 90%). - Overall, the strategy tries to ride momentum in semis and broad tech when signals agree, hedge with volatility exposure when market risk surges, and lean into a concentrated set of leaders when momentum is strong. It is signal-driven with no automatic fixed rebalancing, so positions can drift between signals. Note: this involves leveraged ETFs and may amplify both gains and losses. - Typical instrument set you’ll see includes SOXX, SOXL, SOXS (semiconductors), SPY (US broad market), TECL/TNA/SPXL (levered bulls), VIXM (volatility), SPY again in signals, and a curated list of big-name stocks like MSFT, AAPL, NVDA, TSLA, GOOGL, META, AMZN, etc.

High-upside momentum in semis/tech with volatility hedges. Out-of-sample annualized return ≈49% vs SPY ≈20%; Calmar ≈1.13 (vs ≈1.07). Strong risk-adjusted gains with hedges, though drawdowns can be larger in regime shifts.