A daily, highly layered semiconductor-pated strategy that leans into SOXL for upside with SOXS as a hedge, while using bonds/cash and volatility-based rules to limit risk. It blends momentum cues, volatility overlays, and drawdown safeguards to navigate the semiconductors’ upswings and corrections.

- It’s a daily, rule-based system focused on the semiconductor sector (primarily through SOXL and SOXS, which are leveraged bets on semiconductor stocks). - The engine looks for signals across multiple time frames (short-, medium-, and long-window returns) and uses a mix of momentum and price/strength indicators to judge when semiconductors are in an uptrend, overbought, or vulnerable to a pullback. - When signals are favorable, the system tilts toward aggressive semis exposure by allocating to SOXL (often with a large weight like 70% of the risk budget). If signals indicate risk or a regime shift, it shifts toward bear or risk-off positions, such as SOXS (short semis), or to safer assets like bonds or cash (BSV, BND-like vehicles), sometimes via a small, cash-backed, balanced allocation (e.g., 30% to other parts of the strategy). - The framework includes several protective modules: a Bear Market Stock Selector (which chooses safer assets), a Bull Market Stock Selector (which selects stronger exposures), a Bond Market Check (to decide when to add bonds), and a VIX-related overlay (to adjust exposure when volatility spikes). - RSI-like checks are used to identify overbought/oversold conditions and are applied with different window lengths (e.g., 10, 20, 30, 60, 200 days). When these conditions meet thresholds (e.g., RSI above 70 or 80, or cumulative returns above/below certain levels), the engine modifies weights and which assets are held. - The overall structure is designed to be adaptive: the daily rebalance recalibrates weights across the long/short semis positions and the risk-off components to reflect the latest signals. The user-friendly takeaway: at times you’ll be mostly long semis via SOXL, at other times you’ll hedge or move into safer assets to protect capital, all driven by a layered set of signals instead of a single rule.

Out-of-sample, this semis strategy targets standout upside with strong risk-adjusted edge: annualized return ~154% vs SPY ~21%, Sharpe ~1.55 vs ~1.33, Calmar ~2.23. It uses hedges and risk controls, but accepts higher drawdown risk (~69%), so it suits risk-tolerant investors seeking outsized upside.