A rules-based biotech long/short that switches between LABU and LABD using XBI and SPY as regime signals, with a kill switch in macro-downturns and profits from LABD donated to rare-disease research.

Here's how a layperson can understand it: - LABU and LABD are two directions on biotech stocks: LABU tries to go up if biotech stocks rise; LABD tries to go up if biotech stocks fall. - The system watches two big guides: XBI (the biotech index) and SPY (the broad market). If XBI is climbing steadily and isn’t moving with the overall market, the system leans toward LABU (betting biotech will rise). - If XBI starts to fall or moves in step with the market (a sign of broader market weakness), the system shifts toward LABD (betting biotech will fall) and may reduce biotech exposure overall. - A built-in kill switch stops LABU when biotech is in a clear downtrend and behaving like the rest of the market, treating biotech losses as part of a macro downturn instead of a local up-and-down move. - The strategy re-weights every trading day and also uses other signals (from assets like treasury bonds and volatility products) to sense risk and avoid getting caught in a market-wide selloff. - Any profits from the short (LABD) are donated to rare-disease research, giving the strategy a philanthropic goal. - Overall, the approach favors transparent rules over guesswork and tries to capture biotech gains while protecting against big market drops.

Out-of-sample, this strategy delivers dramatic edge vs the S&P: Sharpe ~16.8 vs ~2.5, drawdown ~0.72% vs ~2.53%, and far higher alpha/calmar. Plus, LABD profits fund rare-disease research.