A market-switching strategy: when bonds look healthy, it owns U.S. stock funds; when bonds look weak, it rotates into hedges like gold, managed futures, anti-beta stocks, or a fund that rises when long-term Treasuries fall.

This strategy first asks a simple question: “Are regular bonds acting healthier than a fund that bets against bonds?” If yes, it goes into “risk-on” mode and splits money between JEPI (a calmer income-focused U.S. stock fund) and HIBL (a very aggressive fund that magnifies moves in fast-moving S&P 500 stocks). If no, it goes into “defensive” mode. There it splits money across two buckets and, in each bucket, buys the option that has recently been weaker on a short-term momentum gauge called RSI. The choices are BTAL or UGL, and DBMF or TMV.

Out-of-sample, regime-switching strategy aims for upside with hedges. It posts ~43% return vs 22% on the S&P 500, Sharpe ~1.24, Calmar ~1.18. Drawdowns can be larger, but hedges (gold, futures, anti-beta, inverse bonds) support long-run risk-adjusted growth.