A daily, rule-based strategy that blends a cash-defensive core (USDU/BTAL) with opportunistic equity/commodity exposure, triggered by bear/momentum/volatility signals and RSI checks, and adjusted through volatility-based tilts and regime switches. It targets upside in favorable markets while containing downside in weakness.

- Purpose: Daily-rebalanced, mixed cash/defensive/core equity strategy that uses a cash-like base (USDU and BTAL) and adds or reduces exposure to equities, commodities, and selective defensive assets based on market signals. - Core cash/defensive layer: The base allocation aims to be 100% split across cash proxies (USDU and BTAL) to establish a risk-off core anytime conditions push risk down. - Bear-market regime checks: The system tests for a bear/weak regime (using market breadth/sector softness checks, trend signals, and crossovers like SMH vs QQQ). If conditions indicate risk-off, capital tilts toward USDU, BTAL, and short-term fixed income tools (TIP, STIP) and USD exposure (UUP). - Risk-on overlays: When regime signals are favorable, the strategy moves into equity-oriented exposures such as QQQ, SPY, and levered equity funds (QLD for QQQ, SSO for S&P 500) to pursue upside. A RSI/relative-strength hook against QQQ and other momentum checks help decide whether to tilt toward high-growth or stay with cash proxies. - Volatility-based tilts: Within the risk-on bucket, the algorithm uses standard deviation (volatility) screens to decide which assets to favor. It can pick top or bottom volatility assets (e.g., High STDvR vs Low STDvR groups) and then select one or two assets to overweight. This introduces a dynamic tilt toward either more stable or more volatile assets depending on the chosen subgroup. - Regime-driven asset mix: The scheme blends a “bear market check” with momentum/RSI signals and volatility screens to determine the mix among cash proxies, USD, commodities (PDBC, OILK, XLB, GDXJ), and levered equity vehicles, applying daily rebalancing to keep the target exposures aligned. - Example signal set (high level): If RSI(QQQ, 10) > 30 and bear-market checks aren’t tripping, overweight risk-on assets like QLD or SSO and some commodity/defensive components via volatility screens. If bear signals trigger, lean into US Dollar exposure (USDU, UUP), anti-beta (BTAL), and short-duration fixed income (TIP/STIP). - Outcome: The strategy aims to capture upside when markets cooperate while maintaining a robust defense via cash proxies and dollar/defensive assets during downturns, with rapid daily rebalancing to reflect the latest signals.

Out-of-sample, this strategy beats the S&P: higher Sharpe (≈1.75 vs 1.49), stronger annualized return (~37% vs ~25%), and tighter drawdown (~17% vs ~19%), driven by a regime-based, cash-defensive core that captures upside and protects downside.