A regime-aware, rule-driven plan using 3x leveraged ETFs for growth in strong markets, with structured hedges (and a BlackSwan catcher) to protect against sharp downturns. It rotates among leaders, adds bear overlays (SOXS, SQQQ) in extreme momentum/volatility, and uses defensive assets (XLP, UUP, SPLV, SVXY) to temper risk. It aims to ride the long run with leverage while trying to limit big drawdowns.

- The system starts by assessing the market mood (bullish, normal, or highly volatile/bearish) using momentum-like signals and price relationships between big indices and sector/asset proxies. It treats a bull market as a favorable regime to run a concentrated, leveraged long portfolio; a bear/volatile regime triggers hedges and more defensive positioning; and a sideways regime prompts mixed risk controls. - In a Bull Market, the strategy largely allocates to 3x ETFs that benefit from rising tech/large-cap momentum, while sprinkling in defensive/tilt assets (like US dollar exposure, consumer staples sector exposure XLP, low-volatility SPLV, and a partial hedge with SVXY) to temper drawdowns. A portion of capital (about a third in the bull-market portion) may be allocated to SVXY to provide a hedge against spikes in volatility when long exposures are stressed. - The decision to add hedges (SOXS for semiconductors, SQQQ for Nasdaq, and related bear/defensive positions) is driven by momentum/RSI-type checks on specific tickers (e.g., SOXX, TQQQ) relative to peers (e.g., SPY or QQQ), plus checks on the velocity and the trend of those signals (e.g., RSI thresholds around 75–80 for overbought signals, or low RSI for oversold signals). The idea is: when tech momentum gets extreme, protect with bear overlays; when momentum cools, redeploy into leveraged longs. - A separate “BlackSwanCatcher” branch aggressively looks for extreme, rapidly deteriorating conditions and tilts toward bear hedges (SOXS, SQQQ) to avoid sizable drawdowns even if the core position remains long elsewhere. - The strategy also uses a “Bull Market Sort Function” to pick and weight long holdings (for example, prioritizing combinations like TQQQ, TECL, SOXL), often selecting the top few by a moving-average return or other momentum metric over a window (e.g., 21–60 days). This rotation helps avoid staying too concentrated in a lagging name when the market leadership shifts. - Throughout, the model checks for “60-day overbought” and other composite conditions (e.g., different asset groups like UUP, XLP, SPLV) to decide whether to trim, rotate, or add hedges. It also includes a specific allocation of SVXY during bull phases to balance the leverage risk. - The system is designed to be daily-rebalanced (as suggested by the root’s “daily” rebalance note) and is built with a layering approach: core long exposure is governed by the Bull Market module, while risk controls, hedges, and alternative sectors/defensives live in parallel decision branches that can override or modulate the core tilt when conditions demand it. - The philosophy behind the draws from Leveraged For The Long Run is to harness long-term trend amplification with leverage, but only within a disciplined framework that rotates and hedges to reduce catastrophic drawdowns in changing regimes. The explicit examples of tickers (AAPL, AMZN, MSFT, GOOGL, NFLX, etc.) appear in nested decision trees that simulate how a defensive bear-tilt could be layered on top of a bull-core when investors become risk-averse.

Regime-aware, 3x-leveraged strategy aiming for bigger upside than the S&P by riding strong bull markets with hedges and rotations. OOS return ~30% vs ~26% for SPY, but with larger drawdowns in downturns—requires higher risk tolerance.