A daily, rule-based, multi-asset system that switches between risk-on and risk-off modes using momentum and volatility signals, mixes leveraged equity baskets with defensive assets, and dynamically selects top performers to form the active portfolio.

- The system operates on a daily rebalance and splits capital across several broad themes or baskets rather than a single static mix. - It uses regimes to decide where to invest: a Risk On pathway emphasizes equities and related leveraged baskets, while a Risk Off pathway shifts toward bonds, cash-like positions (short-term Treasuries), the US dollar, gold, and commodities. - Signals come from a mix of momentum and trend indicators (moving-average comparisons like 50/200, 20/50, exponential moving averages, and prior-period cumulative returns) plus momentum strength checks (relative strength and RSI-like logic), volatility indicators (proxied by VIX-related data), and rate signals (Fed-rate related groupings). - When a regime is deemed favorable (for example, the strategy detects a bullish trend in SPY or a favorable momentum signal in a set of leading equities), it builds a “Leveraged Risk On Basket” by picking the top 2 (or sometimes top 3) candidates among 3x ETFs such as SPXL (S&P 500 3x bull), UDOW (Dow 30 3x bull), and TQQQ (QQQ 3x bull) based on 10-day cumulative returns. This is intended to magnify gains in strong uptrends. - If conditions flip to risk-off (volatility spikes, RSI deteriorates, or other risk signals trigger), the system shifts to a defensive slate that includes short- or long-duration bond funds (BND, AGG, IEF, TMF/TMV, HYG), inflation-protected assets (TIP), cash proxies (BIL), currency exposure (USDU), gold (GLD), and commodity funds (PDBC, DB-related ETFs). - Within the risk-off bucket, the strategy tends to favor the top performers (by moving-average return or cumulative return over a window) and re-weights toward those assets, often reducing exposure to leveraged equity baskets. - The whole framework is designed as a Pareto-style selection: many sub-portfolios or “canary” variants run in parallel, and only the best-performing components (under current market regime) are elevated into the active exposure set. - The intended effect is to capture upside during favorable regimes and reduce drawdowns during adverse regimes, while keeping a broad asset universe to avoid crowding risk and to diversify across equities, bonds, currencies, gold, and commodities.

Dynamic regime-switching strategy uses leverage in uptrends and shifts to bonds/gold/cash in risk-off. Out-of-sample: 32.25% annualized vs SPY 27.16%; Calmar ~1.17; Sharpe ~1.40. Higher upside capture with risk controls; drawdowns can rise in crises.