A daily rebalanced hedged bull strategy that mostly tracks the S&P 500 but shifts into bonds, gold, and currency if rates or volatility suggest risk, using levered ETFs and a regime-based allocation.

Goal is to capture upside with the S&P 500 while limiting drawdowns with hedges. Every day the fund decides how much to hold in a stock oriented sleeve versus a defensive sleeve. Two macro regime checks drive the core stance: 1) Rates regime check: compare the 60 day cumulative return of bonds (BND) to cash proxies (BIL). If bonds have performed better, rates are considered not likely to rise; otherwise rates are expected to rise. 2) Volatility and recent price momentum checks: a set of signals looks at how the S&P 500 has acted recently and how volatile markets have been. If volatility looks high or the market has recently declined, defensive tilts are favored; if volatility is low and the market has held up, equity tilt is favored. Within the rates not rising scenario the system uses a mix that can include long duration exposures when volatility is high (eg TMF) or equity tilt via UPRO when conditions favor risk taking. Within the rates rising scenario the plan uses a 55/45 split: about 55 in a levered equity sleeve via UPRO to pursue upside, and about 45 in an interest rate safe haven basket (IEF, UUP, GLD, TMF and sometimes UPRO) with weights guided by inverse volatility rules to emphasize lower volatility components. In essence the model blends equity upside with a multi asset hedging layer that includes bonds, gold and currency to reduce sensitivity to rising rates and spikes in volatility. Daily rebalancing keeps the posture aligned with current signals but means more frequent trading and higher costs. Levered ETFs increase both potential gains and risk, so this should be understood as a tactical approach rather than a simple buy and hold. The plan references SPY as a core equity proxy and uses UPRO as a levered equity vehicle, TMF as a leveraged long bond, IEF as intermediate term bonds, GLD as a hedge against inflation, UUP as dollar exposure, and BND as broad bond exposure, with BIL used as a cash proxy.

Dynamic, regime-driven hedged equity strategy seeks S&P upside via levered exposure while diversifying with bonds, gold, and currency to mitigate rising rates and volatility. Out-of-sample: ~18% annualized return, Sharpe ~0.67 vs SPY ~1.38.