A daily, rules-based momentum strategy focused on semiconductors (via SOXX/SOXL/SOXS) with layered hedges and defensive tilts. It uses RSI and moving-average signals to switch between levered long/short semis and to deploy a beta hedge (dollar, bonds, commodities) and cash-like assets. The design seeks to ride semiconductor momentum while dampening risk through diversification across crosses with broad-market, fixed income, and defensive instruments.

- The strategy runs a daily rebalance that centers on semiconductors via SOXX, SOXL, and SOXS, and uses RSI momentum signals to decide whether to tilt toward bullish levered bets, bearish levered bets, or hedged/cash-like exposure. - Core engine (SOXX RSI) watches the SOXX ETF’s momentum. If SOXX looks strong or overbought on short windows (high RSI), the model evaluates whether to lean on SOXL (bull 3x) or to hedge with SOXS and other assets instead of staying fully long. - A Beta Hedge module seeks to dampen risk by selecting a small set of anti-beta/defensive assets (e.g., UUP/USDU for dollar exposure, BIL for cash-like stability, DBC for commodities, SH/PSQ for equity hedges) based on momentum and risk filters. These are layered using a “bottom/top” selection approach over a 14-day window to pick the most favorable hedges. - Additional sub-strategies (e.g., “Hotdogs n Healthcare”) tilt parts of the portfolio toward defensives (e.g., BIL, UNH, COST) when certain RSI/moving-average conditions in major indices apply, helping to reduce correlation to the stock market during risk-off periods. - Cross-asset checks compare semis signals with other markets (SPY, SPHB, IEI, IEF) and macro proxies (gold via UGL, dollar via UUP/USDU) to avoid over-commitment in any single regime. These checks use a mix of moving-average returns and RSI thresholds to determine whether to add, reduce, or avoid exposure. - Position sizing is done in blocks with weights that sum to 100, so the model can push more weight into the core semis logic when signals align and pull back during risk-off signals. The end result is a dynamic mix of long semis bets, short semis hedges, and diversified hedges that aim to capture upside in semiconductors while limiting drawdowns through hedges and defensive tilts.

Out-of-sample, higher upside in semis: ~30.4% annualized vs SPY’s 24.6%, thanks to hedges and defensive tilts. Designed to dampen downside with built-in risk controls, though stress periods can yield larger drawdowns.