A mechanical, no-leverage sector-rotation strategy that uses UVXY volatility signals to guard risk and momentum screens to pick the strongest sectors (via XLK, XLF, XLV, XLE, XLB, XTL, XLRE, XLY, XLI, XLU, XLP). It rebalances daily, tends to hold cash when fear is high, and targets the top momentum sector with equal-weight exposure across selected sectors.

- Check market stress using UVXY RSI (10-day lookback). If UVXY RSI is above 80, treat as high risk and avoid heavy equity exposure. - If not in a high-stress regime, evaluate a universe of sector ETFs (XLK, XLF, XLV, XLE, XLB, XTL, XLRE, XLY, XLI, XLU, XLP; plus a bond proxy option via TLT in some branches). - For each sector, apply two momentum tests: 1) Rank sectors by their 200-day moving-average return and pick the top sector (top 1). 2) Require a bullish short-to-medium momentum signal: the sector’s 50-day moving average price must be above its 200-day moving average price. - If a sector passes, allocate to that sector. If a sector fails, apply a cash-equal rule that blends cash across the eligible sectors instead of loading that sector. - Build a Sector Rotator (No Leverage) portfolio that rebalances daily across the chosen sectors, using a full cash-equivalent weighting scheme (no borrowings). - The goal is to ride momentum in the strongest sectors when fear isn’t extreme, while reducing exposure or holding cash when volatility spikes; the design uses familiar sector proxies (XLK, XLF, XLV, etc.) and avoids leverage. - KMLM is not used in this strategy; the tickers shown are those listed in the rule set for sector exposure.

Out-of-sample edge: Sharpe ~1.65 vs SPY ~1.07; Calmar ~2.92; annualized return ~71% vs ~20% for SPY. No leverage, daily rebalancing, UVXY risk-gate, and cash in fear—targeting the strongest sectors for higher risk-adjusted returns.