Terminator Trend is a daily-rebalanced, risk-aware, ETF-centric strategy that largely hedges with SH (short S&P 500) and a volatility-aware safety sleeve, while selectively tilting to a diversified Ten ETFs long basket when momentum broadens. It uses RSI across many tickers/timeframes to decide allocations and includes multiple blend modes (75/25, 50/50, 10/90) with a 60-day scale-in logic to enter positions gradually.

Terminator Trend is a daily-rebalanced, rule-based strategy that tries to catch trends while protecting capital. RSI is used as a momentum gauge: if many market indicators on many ETFs show strong momentum (prices rising quickly or not yet overbought), the model leans toward more aggressive exposure or a broad long basket. If momentum looks overheated or deteriorating, it shifts toward protection. The core decision is a big hedge: 75% of the capital is allocated to SH, an ETF that moves up when the S&P 500 falls (i.e., it profits when U.S. stocks drop). The remaining 25% goes to a “Smooth Safety” sleeve built from EUM (European equities) and SH but weighted by inverse volatility (i.e., putting more weight on the less volatile asset) to keep risk down. This safety sleeve is dynamically adjusted with a 11–14 day lookback for inverse-vol calculations. The model also considers alternative allocations like Blend | 50/50 or Blend | 10/90, which mix SH with safety assets in different ratios. When momentum signals across a wide set of assets (e.g., SPY, QQQ, IVV, MGC, IOO, etc.) satisfy certain RSI thresholds across various window lengths, the strategy shifts toward a diversified “Ten ETFs” long basket, including small-cap ETFs (IWM, VB, SCHA, SPSM, IJR), sector ones (XLF, XLI), and select thematic funds (ARKK, XAR). There are also checks on price relative to moving averages to avoid buying when prices are not in a favorable trend. In short, you start with a hedge-heavy posture, use momentum signals to decide whether to tilt toward safety or toward a diversified long basket, and rebalance every trading day. Important concepts to know: - RSI is a momentum indicator that helps identify whether a ticker is overbought or under pressure. - SH is a fund that goes up when the S&P 500 goes down. - EUM is a Europe-focused ETF. - Inverse volatility weighting favors the less-volatile asset in the safety sleeve. - Ten ETFs is a diversified long basket built from several broad and sector ETFs. The design is intricate and aims to adapt to changing market regimes, but investors should be aware of turnover, costs, and the assumption that RSI-driven momentum can reliably forecast near-term trends.

Terminator Trend delivers higher out-of-sample risk-adjusted returns vs S&P 500: Sharpe ~1.04 vs ~0.84, annualized return ~19.2% vs ~14.7%, with a hedged core (SH) and a diversified safety sleeve. Lower market beta and disciplined risk control.