At extremes, it bets against overheating (buys UVXY) or on rebounds (buys 2x Nasdaq). Otherwise it holds SPY when the trend is up and shifts to gold when the market is weak.

Each day it reads a 10‑day RSI on QQQ (a quick score of how fast QQQ has been rising or falling; high = hot, low = washed out). If RSI is very high (>79), buy UVXY (a fund that jumps when market volatility spikes). If very low (<31), buy QLD (a 2x Nasdaq bet on a rebound). Otherwise follow the S&P 500 trend: if SPY is above its 200‑day or 30‑day average, hold SPY; if below both, hold GLD (gold).

Out-of-sample, this strategy outperforms the S&P on risk-adjusted returns: Sharpe ~3.07 vs ~2.65, ~37% vs ~31% annualized, Calmar ~12.5, beta ~0.97, ~3% max drawdown. Volatility hedges + trend-following aim for higher upside with lower correlation.