A highly complex, rule-driven mix of dividend-focused core holdings (SCHD, DBMF, KMLM) with daily, multi-layer overlays that swing between leveraged growth ETFs and hedges/defensive assets. Signals rely on momentum and volatility tools (RSI, moving averages) to tilt exposure, aiming to grow a dividend pool while managing drawdown risk. In short: core income engine plus a dense risk-on/risk-off overlay that can quickly shift between aggressive and defensive bets.

- Core: You own a backbone of dividend-oriented assets (SCHD, DBMF, and KMLM) that are meant to produce income and resist drawdowns. These form the “always held” pool. - Overlays: Every day, a large set of rule blocks evaluates signals (momentum, trend, volatility, and relative strength) to decide how aggressively to invest beyond the core. - Growth vs. defense: When signals look favorable, the strategy tilts toward levered growth ETFs (examples include TQQQ, SPXL, SOXL, TECL, UPRO) to try to amplify gains. When signals warn of risk, it shifts toward hedges or defensive bets (UVXY, VIXY, TMF, TMV, SHY, BIL, GLD, UUP) to protect the portfolio. - Signals: It uses indicators like RSI (momentum), moving-average comparisons, and cumulative return, often comparing assets to broad indices (SPY, QQQ, etc.). It also uses filters to pick the strongest or weakest assets (e.g., “top/bottom by moving-average return”). - Rebalance: The system is described as daily, meaning weights can change every day based on the current signals. - Goal: Turn volatile gains into a stable income stream by growing a dividend stock pool while attempting to limit drawdowns via hedges and defensive exposures. - Cautions: Very complex, tax considerations (K-1), and levered ETF risk. It’s best viewed as a research prototype rather than a simple, bite-sized real-world plan.

Out-of-sample edge: Sharpe ~1.35 vs SPY 1.32, Calmar ~1.78, and annualized return ~64% vs ~21% for SPY. It grows dividends with tactical hedges for higher growth with controlled risk—though drawdowns may reach ~36%.