A daily, rule-based long–short biotech strategy that flips between LABU (long biotech) and LABD (short biotech) using XBI and SPY to define market regimes. It includes a kill switch to avoid LABU in sustained biotech downtrends that move with the overall market, treats some biotech selloffs as macro events, and donates LABD profits to rare-disease research.

- It is a rule-based system that trades two leveraged biotech ETFs: LABU (long biotech) and LABD (short biotech). - The system looks at two main regime signals: XBI (biotech momentum/trend) and SPY (broader market). If XBI shows strength relative to SPY, the model tilts toward LABU; if XBI weakens or moves in tandem with SPY, it tilts toward LABD or hedges. - A kill switch exists: if XBI is in a sustained downtrend and is highly correlated with SPY, LABU exposure is disabled. In that regime, biotech weakness is treated as a macro market sell-off rather than a biotech-specific dip, so buying LABU is avoided and the model relies more on downside protection or short exposure. - The decision logic uses a mix of signals (trend indicators like moving averages, momentum metrics like rate of change, volatility proxies such as standard deviation of returns, and RSI) and cross-asset comparisons (e.g., how LABD/LABU would respond given XBI vs SPY dynamics). Some rules also reference related assets (e.g., treasury and other volatility proxies) to inform regime strength and risk, though these are secondary to the primary XBI/SPY regime inputs. - Rebalancing is dynamic and may assign different weights (the structure shows a high-weight condition, e.g., 80/100) to LABU or LABD based on the current regime. Risk controls and connectivity to volatility proxies help temper exposure during turbulent periods. - The strategy is named to reflect Vigilante Bio, LLC’s framing and notes that profits from LABD are donated to rare-disease research; profits from LABD are the charity channel, while LABU allocation serves as the primary market exposure toggle. The approach is explicitly biotech-focused, but it uses macro signals to avoid biotech trades that are merely market-driven downturns.

Leveraged long/short biotech strategy using XBI/SPY regime signals to tilt LABU/LABD. A kill switch avoids biotech in macro downtrends, delivering biotech upside with downside protection - historically stronger risk-adjusted returns vs S&P 500.