Daily buy UVXY if SPY is extremely overbought, else buy TQQQ if SPY is extremely oversold, else hold 5 lowest-volatility sector ETFs with equal weights. Rebalance daily; uses short-term SPY momentum as trigger and a volatility screen to select defensive exposures.

Every day, the strategy checks SPY’s short-term momentum. If SPY looks extremely overbought in the last week (RSI around 86 or higher), it moves to UVXY to hedge against a spike in market fear. If SPY looks very oversold (RSI around 27 or lower), it moves to TQQQ to bet on a bounce in tech. If neither extreme is present, it looks at a broad list of sector and related ETFs (like energy, gold, financials, tech, healthcare, and more) and picks the five with the lowest recent volatility, giving each an equal share. The positions are reviewed and adjusted daily. The goal is to combine protection against sharp downturns with a quiet, low-volatility exposure when the market is behaving normally.

Dynamic hedge + low‑vol sector rotation offers higher out‑of‑sample upside vs SPY: ~29.9% annualized vs ~24%, with Calmar ~1.28. Daily, rules‑based hedging and diversification aim for stronger long‑run risk‑adjusted returns while moderating drawdowns.