A rule-based, hedged strategy that alternates between Nasdaq growth bets and multi-asset hedges to ride rallies while protecting against drops. Uses momentum and trend signals across QQQ, SPY, bonds, gold, and hedges to rotate exposures.

What is RSI? It’s a momentum gauge that ranges from 0 to 100 and helps gauge if an asset is overbought (likely to pull back) or oversold (potentially ready to rise). In plain terms, the strategy watches whether short-term price moves are unusually strong or weak and uses that to decide where to invest. What about a moving average? It’s simply the average price over a set period to show the general direction of prices (is it up, down, or sideways?). The strategy runs through simple steps: - Start with a cash allotment (some portion kept aside) and then divide the rest among two main families of bets: (1) Nasdaq/QQQ-focused bets aiming for growth when the market is healthy, and (2) hedges that protect against losses when risk looks high. - Nasdaq tilt: if momentum signals and trend checks look favorable for Nasdaq-type exposures, the model tends to place bets on Nasdaq-related assets (like QQQ and, in some cases, leveraged or inverse Nasdaq products) depending on how strong the signals are. - Hedge/defensive tilt: when momentum or trend checks warn of risk, the system rotates into hedges such as short Nasdaq vehicles (PSQ, QID), Treasury bonds (TLT, IEF, SHV), gold (GLD), and specialized hedging funds (BTAL, DBMF). The goal is to reduce exposure to equities and increase exposure to risk-off assets. - Signals used include short- and medium-term momentum checks (RSI looking at recent price moves across assets like QQQ and SPY) and trend checks (price relative to moving averages, e.g., is price above a long-term 200-day average or a shorter 20-day average?). There are also nested rules that combine several signals to decide whether to stay with growth, rotate to hedges, or stay in cash. - Rotation and balance: when a signal favors growth, you’ll see more exposure to Nasdaq equities. When signals favor hedging, you’ll see more exposure to Treasuries, gold, and hedging ETFs. The system also includes guardrails to avoid over-concentration and to rebalance when conditions have shifted beyond a small threshold. - What you hold over time: a mix of broad market exposure (QQQ and SPY), hedges (PSQ, QID, TLT, IEF, SHV, GLD), and diversified overlays (BTAL, DBMF) that collectively aim to smooth returns and protect capital while still allowing participation in up markets. - Practical takeaway: this strategy isn’t simply “buy the market” or “short the market.” It’s a disciplined, rule-based blend designed to ride rallies in growth areas (Nasdaq) but quickly shift toward protection when warning signs appear, using a suite of hedges to limit losses. Note: The exact weightings, trigger thresholds, and asset selection can change with market conditions, and there are no guarantees. The model explicitly emphasizes capital preservation during downturns through its hedging components.

Dynamic Nasdaq growth with built-in hedging drives smoother, risk-adjusted returns. Out-of-sample drawdowns cut to 11.8% vs SPY’s 18.8%, Calmar ~1.34, and disciplined risk management help preserve capital while still capturing upside.