A high-risk market-timing strategy that switches between stock funds, bearish funds, volatility hedges, and bonds based on trend and “too hot/too cold” price signals.

This strategy first asks: “Is the market panicking?” If yes, it moves into very short-term Treasury bills (BIL), a cash-like safe place. If not, it checks whether the S&P 500 (SPY) is in a healthy long-term uptrend. In uptrends, it usually buys stock funds tied to the S&P 500 or Nasdaq, sometimes using boosted versions for bigger swings. If stocks look too overheated, it temporarily switches to a volatility fund (VIXM) as a hedge. If the market is not in an uptrend, it becomes much more tactical. It looks for markets that have recently dropped hard and bets on a bounce, often using very aggressive funds like TQQQ (3x Nasdaq), SQQQ (3x inverse Nasdaq), or SPXU (3x inverse S&P 500). It can also hide in bond funds like BSV or TLT. A key tool here is RSI, which is just a score from 0 to 100 showing whether something has risen or fallen a lot recently. Very high RSI can mean “too hot,” and very low RSI can mean “too beaten up.”

Dynamic market-timing strategy with an out-of-sample edge: 26.7% annualized return vs SPY’s 20.6%, and a diversification-friendly beta near 0.85. It uses hedges and cash during panics to target larger uptrends, though drawdowns can be sizable in stressed markets.