A multi-stage, momentum-enabled basket picker from ~50 SPY stocks, selecting top 3–10 winners and weighting them by inverse volatility, with a volatility-hedging overlay (UVXY/RSI rules) and infrequent rebalancing to target gains in uptrends while limiting downside.

- Start with ~50 SPY components (big, liquid US stocks) as the investable universe. - For each stock, compute momentum (moving-average return) over specified windows (eg, 100 days) and also assess volatility patterns (eg, 200-day standard deviation) to gauge risk. - First filter: pick the top 10 by momentum within the 50-stock universe, with a bias toward more stable performers (sorting by volatility). - Second filter: from those, select the top 3 by momentum (shorter window) to form a high-conviction core. - Position sizing: weight the chosen stocks using inverse-volatility logic (lower-volatility names get larger weights); ensure weights sum to the available capital (and maintain a cash cushion when needed). - Hedge overlay: monitor volatility signals via UVXY and related ETFs (eg, RSI on a broad proxy like UPRO and price relationships of UVXY). If volatility signals trigger, adjust exposure or move toward cash/hedges to limit drawdown. - Rebalance: not daily; uses a corridor/threshold approach (rebalance corridor width ≈ 0.001) to avoid overtrading. - Sector/stock exposure is driven by the listed universe, which skews toward big growth names and mega-cap stalwarts (tech, consumer, healthcare, financials, energy, etc.).

Out-of-sample momentum, inverse-volatility sizing, and a volatility hedge aim to outperform the S&P 500 with lower drawdowns. Slow, disciplined rebalancing focuses on big-cap leaders while aggressively limiting downside risk.