A daily, rule-based engine that anchors in SCHD/DBMF/KMLM dividends while using a large overlay to rotate risk assets and hedges. It dynamically shifts into leveraged or volatility vehicles for upside, and hedges for downside, across market regimes with strict risk controls and a daily rebalance.

Think of it as a smart, daily-tuned machine that sits on top of a dividend-focused core. The core is SCHD, DBMF, and KMLM—these are the steady income anchors. On top of that, the machine tests a big list of other assets (stocks, stock-bonds, and levered/ inverse ETFs) to see which ones look strongest or safest right now. It uses simple checks like: is a price higher than a recent trend? has an asset shown strong performance over the last several weeks? is volatility high or low? Then it picks one or a few assets that score best and assigns weights to them, with a bias toward the dividend core. It also includes hedges, using volatility-related ETFs (UVXY, VIXY) and other defensive moves (TLT, TMF, TMV, BIL) to limit losses if markets deteriorate. The daily rebalance means the mix can shift a lot from day to day, but the strategic goal is to grow income from SCHD/DBMF/KMLM while minimizing big drawdowns through hedges and risk-off allocations. In plain terms: it’s a disciplined but aggressive income engine with a built-in risk-control overlay that tries to tilt toward dividends when things look calm and tilt toward hedges when volatility spikes or trends weaken. It presumes the dividend core provides stability, while the overlay seeks to grab extra upside in good times and reduce downside in bad times. Important to know: this is a sophisticated, active system that relies on many rules and synthetic relationships (e.g., relative strength, moving-average comparisons, and regime groupings); it is not a simple buy-and-forget dividend hold.

Out-of-sample shows higher risk-adjusted upside: 26.85% vs 21.31% S&P; Sharpe 1.41 vs 1.34; Calmar 1.44; drawdown ≈ 18.58% vs 18.76%. A dividend core with dynamic hedging/rotation delivers stronger growth with disciplined risk control.