A daily, rule-based EM strategy that uses momentum (RSI) and price trends, plus cross-asset checks, to ride EM equities (EEM) when favorable and hedge with EM bonds (EDC/EDZ) and a defensive bond/sector basket (BSV, TLT, LQD, VBF, XLP, UGE) when risk rises. It blends EM exposure with a built-in safety net through a complex decision-tree of signals.

- Daily check: EM momentum and trend signals guide exposure. If EM momentum looks solid (RSI signals and price above a long-term moving average), lean toward EM stocks (EEM). If momentum weakens or price shows risk, shift toward the defensive sleeve (BSV, TLT, LQD, VBF, XLP, UGE) or use EDZ to hedge EM exposure. - Signals include: RSI thresholds on EM (e.g., cues around 30 and 80) and moving-average checks; relative-strength comparisons across EM vs US and other assets; and a basket approach within the defensive group where the weakest performers (bottom relative strength) may guide allocation. - Hedge and defense: EDZ acts as a hedge to EM if risk signals trigger; EDC provides EM bond exposure as a protective layer; the defensive sleeve balances risk with bond exposure and consumer-staples style assets. - Rebalance cadence: every day, the model re-evaluates and adjusts, aiming to stay aligned with the current momentum regime. - What to expect: during EM uptrends, you get exposure to EM equities; during pullbacks or risk-off periods, you’ll see more allocation to safe bonds or defensive sectors; the strategy tries to smooth ride rather than chase every EM rally or every risk spike.

EM-focused, rule-based strategy beats the S&P out-of-sample: higher risk-adjusted return (oos Sharpe ~1.94 vs ~0.58), oos annualized return ~61.9%, with built-in hedges and daily rebalancing to curb drawdowns.