A low-correlation hedging portfolio that uses momentum-style signals to tilt toward volatility, long Treasuries, gold, and other diversifiers when risk signals appear, and toward different hedges when tech momentum falters. It avoids core SPY/QQQ exposure and rebalances only on predefined signals, aiming to protect against common market moves while keeping diversification.

- Goal: hold assets that don’t move in lockstep with the main market indices (SPY/QQQ) to reduce overall portfolio correlation and help protect when markets move unpredictably. - What RSI means here (in simple terms): RSI is a way to gauge whether the recent price move has been too strong (likely to pause or reverse) or too weak (likely to bounce). Values higher than 70-80 suggest “too much up” and potential pullback; values below 30-35 suggest “too much down” and potential rebound. - How signals drive choices: 1) VIX Hack group (volatility and hedges): If a market momentum measure on a large growth proxy is very strong (VOOG RSI over 10 days > 80), the strategy leans into hedges (VIXY — a volatility vehicle, TMF — long-dated Treasuries, BTAL — an anti-beta hedge) with a balanced cash look. This is aimed at protecting if volatility or risk spikes accompany overextended upside in growth stocks. 2) If broad-market momentum on SPY is elevated (SPY RSI over 14 days > 65), there’s another hedging branch that follows similar logic but with different asset sets and weights, reinforcing a risk-off posture when overall market momentum is rich but potentially due for a pullback. 3) VIX Hack with Pops (risk-off tilt when QQQ shows weak momentum): If QQQ’s momentum is very weak (QQQ RSI over 14 days < 35), the system looks for the top three diversifying assets (from VIXM, BTAL, EDV, SPLV) based on recent momentum, and assigns a substantial share to these (about three-quarters of the allocated slice). This favors hedges that historically perform with rising volatility or in low-return environments. 4) A complementary selection (alternative deflation/uncertainty hedges): In a second pass, the model can pick from SVXY (a volatility-hedge proxy that can perform when volatility drops), VIXM (mid-term volatility), GLD (gold as a safe-haven), and VWO (emerging markets as a diversified equity-like exposure with different drivers) using a top-by-momentum ranking over a 10-day window, and weight them meaningfully. - Weighting and structure: The strategy uses nested blocks with specific weights (for example, a 70% allocation at the outer level and a 20% allocation inside a cash-equal sub-block). The exact mix shifts based on which branch of the decision tree fires. The goal is to keep a disciplined, low-correlation mix rather than chasing one single signal. - Rebalancing: It has a defined corridor width and a “rebalance none” stance, meaning it is not constantly reshuffling every day; it relies on conditional signals to adjust exposure without frequent trading. - What you’re effectively getting: a small, diversified set of hedges that can help when the market is calm but volatile or weak, with the aim of reducing how much the portfolio tracks SPY/QQQ over time. The assets chosen are specifically selected for low correlation to those main indices, and the decision rules try to capture moments when hedges tend to perform better relative to broad equity exposure.

Out-of-sample edge: ~23.8% annual return vs ~18% for S&P; Sharpe ~1.27 vs ~1.03; Calmar ~1.85; max drawdown ~12.9% vs ~18.8%; beta ~0.45. Low-correlation hedges protect downside and seek diversifier upside.