A tactical, RSI-driven allocation that switches between a volatility hedge (UVXY), a Nasdaq-leveraged bet (TQQQ), and a defensive basket (IEI, GLD, UUP, SCHD) based on QQQ’s 10-day momentum. No automatic rebalancing; allocations are 100% to the chosen bucket.

What it tries to do, in plain language: - It watches the Nasdaq, using the 10-day RSI of QQQ as a quick gauge of momentum. RSI is a number from 0 to 100 that traders use to judge whether recent moves are getting overextended (very high) or oversold (very low). - If QQQ’s RSI is very high (80 or above), the plan puts 100% of the portfolio into UVXY. UVXY is designed to rise when volatility spikes (think market fear rising). The idea is to hedge against a sudden jump in fear when momentum looks exhausted in the Nasdaq. - If QQQ’s RSI is not that high, the plan next checks if RSI is very low (31 or below). If so, it puts 100% into TQQQ, which is a 3x leveraged bet on the Nasdaq-100. This is a high-risk, high-reward tilt that tries to ride a quick rebound when the market seems oversold. - If neither extreme condition is met (momentum is not at an extreme high or extreme low), the strategy allocates 100% equally among four defensive assets: IEI (mid-term U.S. government bonds), GLD (gold), UUP (a bet on a stronger U.S. dollar), and SCHD (quality dividend equities). The equal weighting aims to provide diversification and reduce risk when the market isn’t signaling a strong directional move. - Rebalancing: the plan is described as not rebalancing automatically (rebalance: none). The 0.1 corridor width suggests a tolerance range for weight drift, but in this setup the allocation switches only when the RSI-based rule fires, not on a routine schedule. - What you’re exposed to by design: • UVXY exposure: volatility spikes, potential rapid moves, short-term hedge; can decay in calm periods. • TQQQ exposure: amplified Nasdaq exposure, high risk if the market moves against the position; best over short horizons or when you anticipate a sharp rebound from oversold conditions. • IEI, GLD, UUP, SCHD: a mix of bonds (risk-off), gold (inflation/uncertainty hedge), dollar strength, and high-quality dividend stocks—intended to smooth volatility and provide ballast when not chasing big swings. - Practical takeaways for a layperson: this is a tactical, signal-driven approach that aims to switch between a volatility hedge, a Nasdaq-leveraged bet, and a diversified defensive bucket based on a single momentum indicator. Because it relies on leveraged and volatility-based ETFs, it can experience large swings and may require close monitoring if held over longer periods. It does not rely on a broad multi-asset balance at all times, which means it’s simpler to implement but potentially more fragile in choppy sideways markets.

Out-of-sample edge: 39% annualized return, 23.9% max drawdown, Calmar 1.63 vs SPY 22% return, 18.8% drawdown. An RSI-driven switch among UVXY, TQQQ, or a defensive basket offers sizable upside with defined risk.