A rules-based, dynamic, multi-asset strategy that starts with cash, allocates to US equities (notably XLK among others), adds international, bonds, commodities, and real assets, and uses volatility hedges (VIXY, inverse vols) plus momentum signals to steer risk and return.

- Start with a base of cash (about 60% of the portfolio) and devote the rest to US equities via a structured, rule-based mix of sector ETFs. One key allocation shown is XLK (technology) at about 31.9% of the portfolio, with the remaining equity exposure spread across other sectors and groups. - Within equities, the strategy uses many “if-then” rules that check momentum and trend signals (for example, RSI and moving-average relationships) on major proxies (like SPY, QQQ, and VIX-related instruments) to decide when to overweight or underweight certain assets. - It constantly compares momentum signals against thresholds (e.g., RSI overbought/oversold levels, or relative strength versus a moving average) to decide whether to “step up” risk or pull back. - There are dedicated hedging structures using volatility-related instruments (for example VIXY as a volatility hedge and a “Smooth Safety” sleeve that uses inverse volatility funds like EUM and BTAL with a short window) to dampen drawdowns when market momentum looks weak or overbought. - A sizable portion of the strategy is devoted to diversification beyond US equities: international equities, bonds (various Treasury ETFs), commodities/real assets (gold, oil proxies, dollar proxies), real estate and infrastructure. This keeps the portfolio from being concentrated in one asset class. - The design includes explicit bear/bull sub-strategies and even levered long/short tactics for select high-momentum or high-volatility periods (e.g., QQQ and related 2x/3x themes), which can shift exposure toward bullish or bearish bets depending on signals. - The “Tangency Portfolio 10” label signals an intent to operate on an efficient frontier idea (maximize return per unit risk given inputs) but implemented with real-time rules and a fixed rebalance tolerance (only adjust weights when moves exceed a small corridor). - Tickers shown are a mix of familiar broad-market funds (SPY), sector funds (XLK, XLP, etc.), leveraged/Inverse proxies (TQQQ, SQQQ, UVXY), hedging/volatility products (VIXY), and international, bond, commodity, and real-estate ETFs. The result is a dynamic, diversified, and hedged exposure that aims to capture upside in favorable markets while limiting downside through volatility hedges and broad asset diversification.

Out-of-sample strength: Sharpe 1.11 vs SPY 0.98; Calmar 1.20; max drawdown 10.65% vs 18.76%; beta ~0.55; diversified multi-asset hedging with 12.74% annualized return—more durable upside per unit risk than the S&P 500.