A two-part, monthly, momentum-based rotation with built-in risk hedges. Aggressive rotation selects a top asset each month; safety sleeve shields risk with gold, Treasuries, and USD hedges. A JNK-based risk signal can switch from levered Nasdaq to SPY. 401k-friendly, 1x exposure, rebalanced monthly.

Two monthly rotation modules run in parallel and share the same overall portfolio. Aggressive Rotator: among a list of assets (e.g., SPY, gold, tech, anti-beta, US dollar hedges, short-duration bonds), it ranks them by recent performance and buys the top asset for the month. A separate safety sleeve holds defensive assets (gold, short-term Treasuries, a USD hedge) and can reduce risk exposure. JNK Canary: watches the relative performance of junk-bond exposure (JNK) against a cash proxy (BIL). If JNK outperforms BIL on a 30-day window, it nudges allocation toward SPY instead of more volatile Nasdaq exposure (like TQQQ), otherwise it lets the standard rotation proceed. Rebalance is monthly, and each sleeve’s weight is fixed (the aggressive sleeve and safety sleeve each contribute a portion of the total portfolio, typically balanced to 50/50). The approach intentionally uses widely-traded ETFs to stay 401k-friendly and easy to implement. Assets used include: SPY, GLD, IAU, VGT, BTAL, USDU, SHY, STIP, TLT, SVOL/PFIX, JNK, BIL, SPY, and dollar hedges; some components are set up as “canaries” or hedges to protect against pullbacks.

Out-of-sample, this strategy outperforms the S&P on risk-adjusted return and drawdown: Sharpe ~1.28 vs ~1.02, ~24% vs ~18% annualized, ~11.7% vs ~18.8% max drawdown, Calmar ~2.05. 401k-friendly momentum with hedges.