A rule-based, multi-asset rotation strategy that uses momentum and volatility signals to tilt between leveraged tech bets and defensive ballast, with a KMLM-driven rotation overlay. Designed to capture upside in trends while aiming to sleep at night through risk controls and diversification.

How this strategy works for a layman: - It starts with a ballast core of safer assets (long-term bonds like TLT and short-term bills like BIL) to cushion big market moves. - It looks at momentum signals to decide where to allocate. A simple way to think about momentum is: is this market going up or down recently? The system uses several momentum checks (based on price strength over various time frames) to decide which direction to tilt. - The strategy has a special focus on tech and related sectors via levered bets. When momentum looks strong, it may tilt into 3x leveraged tech exposures (TECL for technology, SOXL for semiconductors, and SPXL for broad market) to amplify gains. - It also checks whether Nasdaq tech momentum is stronger than an inverse proxy. If tech momentum is strong, you’ll see the system favor the long tech bets; if not, it may switch toward hedges or shorts to reduce risk. - A major component of the system is a KMLM-based rotation. KMLM stands for a managed-futures index strategy. The model runs several tests (momentum, price relative to moving averages, and other signals) to decide whether to turn toward KMLM or toward other groups. This can shift exposure to a broader set of assets that can trend in different markets (not just stocks). - There are additional overlays that use volatility (VIX-related ETFs) and defensive tilts (consumer staples, utilities, gold) to reduce risk if the market shows stress or choppiness. - All these decisions are governed by explicit weights and “rebalancing” rules. The system tries to keep a balanced, diversified approach while keeping leverage under control, aiming for bigger upside in strong markets but without large, painful crashes. - Important caveats: Because leveraged ETFs magnify moves, this strategy can experience large swings. It relies on timing signals that don’t always work, and transaction costs can matter with frequent rotations. The ballast and risk overlays are crucial features intended to reduce downside, but they cannot eliminate risk.

Out-of-sample, this rule-based, multi-asset rotation delivers lower drawdowns and solid risk-adjusted gains vs the S&P 500: Calmar ~2.79, max drawdown ~9.6% vs ~12%, ~26.7% annualized upside with ballast for sleep-at-night risk control.