A layered, volatility-driven, contrarian strategy that rotates into UVXY and Nasdaq/tech bear hedges (SQQQ, SOXS, TECS) when momentum signals indicate stress, with equal-weight cash tilts and no fixed rebalance schedule. It uses short-window RSI tests and cumulative-return checks to time hedges across multiple sectors.

- The system looks for an extreme market signal first: if the 10-day RSI of the broad market proxy (SPY) is above 80, it treats the market as overbought and parks capital in UVXY (a bet on rising volatility). - If that signal isn’t active, it still keeps cash but starts checking other baskets (QQQ, sector ETFs) using similar RSI tests across different indices to decide whether to shift toward bear or bull hedges. - The strategy rotates among these hedges in groups (Nasdaq-related, semiconductors, tech) using a mix of bear and bull versions (e.g., SQQQ vs QQQ, SOXS vs SOXX vs SOXL, TECS vs TECL). It measures performance over short windows (1, 5, 10, 25 days) and uses cumulative returns to gauge momentum before flipping to a different hedge. - When a group signals “bearish tilt” or “protective hedges” are warranted, the system assigns weights (often equal) to the active hedges and avoids automatic rebalancing unless a decision rule is met. The result is a contrarian, volatility-aware rotation into hedges designed to perform better when stocks stumble or volatility spikes. - In lay terms: when markets look overheated, you buy volatility; when signals across Nasdaq or tech sectors align with weakness, you tilt toward bear hedges, otherwise you stay cash-equivalent and wait for clearer signals.

Out-of-sample, this strategy beats the S&P on risk-adjusted metrics: Sharpe ~1.15 vs 1.04, Calmar ~1.34, and ~82.5% annualized return vs ~18.1%. It uses volatility hedges and rotations; note drawdowns can be larger in downturns.