A daily-rebalanced, rule-based basket that alternates between volatility hedges (UVIX/UVXY/VIXM), inverse-volatility (SVXY), and growth/bond hedge proxies (QQQ, TQQQ, TMF, TMV, Treasuries, dollars) using short-term momentum signals. It exists in several variant versions, all aiming to protect against volatility while still seeking upside in bull markets, via a cash-equal allocation across components.

- The system rebalances every day, using a nested decision tree to decide which assets to hold and in what proportions. - It centers on volatility hedges (UVIX, UVXY, VIXM) and inverse-volatility (SVXY) as core extremes, with bond-based hedges (BIL, SHY, IEF, TLT, TMF/TMV) and growth proxies (QQQ, TQQQ) for a more balanced mix. - The first major rule checks a momentum measure on SPY (a broad market proxy). If the momentum indicator is strong (roughly when the measure is above a high threshold), the strategy leans into a volatility hedge by buying a 2x VIX futures ETF (UVIX). This is meant to capture protective gains if volatility spikes as the market looks overheated. - If that condition isn’t met, the strategy considers an alternative hedge using SVXY (inverse VIX) and further branches into different market regimes determined by additional cross-asset signals (e.g., bonds vs. equities, and indicators like moving averages or cumulative returns on key assets). - There are explicit “Bear Market” and “Bullish” branches that select sub-positions intended to perform in downtrends or uptrends. The Bear Market branch tends to tilt toward hedges (e.g., inverse vol, UUP, TMV), while the Bullish branch tilts toward growth proxies (e.g., TQQQ) and long Treasuries (TMF) to ride the upside while controlling risk. - An “Extreme Volatility Hedge” path uses very short-term Treasuries (BIL) as a buffer against spikes in volatility. - Each version (v2.0.0 to v2.0.6) follows the same general logic but with slightly different asset selections, weights, or conditioning rules, enabling a family of strategies that can be swapped or tested under different scenarios. - Assets used include UVIX, UVXY, VIXM (VIX futures exposure), SVXY (inverse VIX), BIL, SHY, IEF, TLT (various Treasuries), TMF/TMV (leveraged Treasuries), UUP (dollar), QQQ/TQQQ (growth proxies), and occasional references to moving-average/price comparisons to guide decisions. - The approach is designed to deliver hedging during volatility spikes while retaining upside participation in favorable markets, but it is complex, leverage-heavy, and subject to rapid regime shifts and volatility drag.

Out-of-sample annualized return ~38% vs ~22% for the S&P. Strong risk-adjusted edge (Calmar ~1.29) with systematic hedging and daily rebalancing. Lower market beta (~0.49) plus upside capture—though larger drawdowns can occur during spikes.