A SPY-centered, daily-rebalanced momentum strategy that alternates between long SPY, cash, or short-market hedges. It uses two parallel momentum comparisons (SPY vs bond proxies IEF or BSV) plus a trend check (SPY above its long-term average) and a potential tech tilt (XLK vs QQQ). Short exposure is chosen from SH or PSQ if long conditions aren’t favorable. The goal is to beat SPY by staying long when SPY shows stronger momentum and is in an uptrend, and by hedging or opting for shorts when momentum weakens.

- Core idea: use SPY as the main exposure and decide daily whether to stay invested in SPY, tilt to tech, move to cash, or take a short hedge. - How decisions are made (high level): two parallel checks compare SPY against a bond proxy using momentum indicators. If SPY shows stronger momentum than the bond proxy, and SPY price is above its long-term trend, you stay in or enter SPY. If SPY’s momentum is weaker or its trend filter fails, the system may move you toward cash or toward short hedges (SH or PSQ). - Momentum checks: the system looks at relative strength (a momentum measure) of SPY versus IEF (first branch) and SPY versus BSV (second branch). If the bond proxy has higher momentum than SPY (according to the rule setup), that branch pushes you toward alternatives rather than a full SPY position. - Trend filter: SPY must be above its 200-day-like level to qualify for a pure SPY long, acting as a basic trend confirmation. - Tech tilt: if XLK (tech sector ETF) shows a weak momentum signal (RSI under a threshold, relative to QQQ), the strategy tilts toward XLK in place of a pure SPY tilt, adding a tech exposure when conditions look favorable. - Short hedge option: when the main long signals aren’t supportive, the algorithm may choose a short bet on the market using SH (short S&P 500) or PSQ (short QQQ). Among SH and PSQ, it selects the top candidate based on a short-term momentum ranking (RSI over the past ~20 days). - Rebalance cadence: every trading day, the signals are recomputed and the portfolio is adjusted to the single chosen exposure for the next day. - Tickers involved: SPY (core long), IEF (bond proxy in one branch), BSV (bond proxy in the other branch), XLK (tech tilt), QQQ (tech benchmark for RSI comparison), SH (short S&P 500), PSQ (short QQQ). A few branches also reference a price vs moving-average check for SPY to ensure the trend condition is met before going long.

Dynamic SPY-centric strategy with daily momentum checks, hedges, and a tech tilt. Out-of-sample: ~17.5% annualized return vs SPY 21.3%, max drawdown ~18.8%, Calmar ~0.93, Sharpe ~1.13. Diversified upside potential with risk controls.