A rules-based, tactical system that mixes leveraged equity bets with hedges and bonds, guided by trend (price vs long-term averages), momentum (RSI/momentum in SPXL/TQQQ/SH), and volatility signals (VXX) to time exposures and protect capital.

In plain terms: the strategy watches several signals to decide how to invest. It looks for uptrends (is the market price above a long-term average?), momentum (are the leveraged bets climbing or fading?), and volatility (is fear rising, as indicated by VXX-related signals?). If trends look healthy and momentum is positive, it tilts toward leveraged stock bets like SPXL, TQQQ, and TECL. If signals hint at danger, it shifts toward hedges (SH, VXX) and safer assets (BIL, BND) to reduce risk. A key part of the logic compares bonds versus bear-market exposure over two time windows (20 days for BND versus 60 days for SH) to decide whether to lean more into bonds or more into stock/hedge positions. There are specific stop-and-check rules (e.g., a short-term momentum check on TQQQ, or a SPY price-vs-200-day moving-average check) that can prompt protective moves. Cash allocations are used to balance risk (the system often uses equal or cash-like steps for diversification). The overall flow is: measure trend and momentum signals → choose exposure bands (leveraged equities vs hedges vs bonds/cash) → apply small rebalancing tolerances → adjust gradually rather than rebalance aggressively. The design implies a modular, repeatable framework intended to adapt to changing market regimes rather than lock into a single static allocation.

Out-of-sample, this strategy targets roughly 37% annualized returns with solid risk-adjustment (Calmar ~0.94, Sharpe ~0.87) versus SPY’s ~16%, using dynamic leverage, hedges, and bonds to pursue higher upside while balancing risk (note larger downturns in bear markets).