A monthly, rules-based rotation among stocks, bonds, and hedges that uses a bond-momentum risk filter (63-day BND vs BSV) and a momentum-based rotator to allocate to leveraged equity bets in favorable markets and to safer bond/hedge positions in downturns. The aim is to grow in up markets while limiting losses in down markets through structured diversification and transparent risk controls.

In plain language: the system watches a wide set of ETFs that cover stocks, bonds, currencies, and hedges. It uses momentum (a measure of price strength) to rank these ETFs every month and picks a small group to hold. A separate bond-momentum test (63-day look-back) decides whether to be in stock-heavy mode or in bond/hedge mode. When momentum looks strong, it leans into leveraged stock bets (to amplify gains). When momentum looks weak or bond signals are stronger, it shifts into safer bonds and hedges to protect capital. The whole process runs monthly and is designed to maximize upside while keeping drawdowns in check. You don’t need to understand every rule, just that it’s a rules-based, monthly rotation between risk-taking and risk-mapping assets under a fixed risk-control framework. Example states you might see: a risk-on phase with bets like tech/semiconductor leverage (SOXL, TECL, TQQQ, UPRO) and financials (FAS); a risk-off phase with long Treasuries (TLT, IEF) and hedges (SQQQ, SPXS, VIXY); and various mixed states guided by the bond momentum test (63-day BND vs BSV).

Out-of-sample annualized return ~37% vs S&P ~23%, with a rules-based monthly rotation across stocks, bonds, and hedges. It captures bigger upside in up markets while using a bond-momentum filter and hedges to help limit losses.