A daily, rule-based tactical strategy that shifts between volatility hedges, defensive assets, and equity/tech exposure using RSI momentum signals, aiming to protect on risk spikes and participate on upswings through selective ETF tilts.

What it does in plain language: - It rebalances every day among a set of ETFs: some that go up when volatility spikes (UVXY, VIXY), some that follow the broader market (SPY), some that focus on technology (TECL, QQQ), plus defensive options (BTAL, SHV). - It uses RSI, a momentum indicator, to judge whether a market is strongly trending up or down. When certain RSI readings are high (meaning momentum is very strong), the strategy shifts toward volatility hedges or leveraged tech, depending on which RSI signals align. When RSI readings are not very strong or are signaling overbought risk, it tends to pull back toward safer assets or cash-like positions. - The decision path is a long, branching set of rules: for example, if the RSI of QQQ over a 10-day window is above 80, it adds UVXY; if other RSI checks fail or point to risk-off, it may instead allocate to SHV or other hedges. In some branches, it also compares price action to moving-average behavior (e.g., exponential moving average) to confirm a trend. - Cash-equal steps imply the strategy seeks to distribute available capital rather than concentrating risk in a single asset; in practice this means distributing weights across the selected assets when a condition is met. - The overall effect is a dynamic mix: use volatility-linked ETFs as hedges during volatile or overbought regimes, and lean into equity/tech exposure when momentum signals support it, with a daily reset to maintain the intended risk profile. Important caveats for a layperson: - UVXY and VIXY are designed to track futures on market volatility and can be extremely volatile themselves; they can lose value even when the market is moving modestly, especially if volatility remains stable. - BTAL and SHV add protective balance, but they also carry costs and may dilute upside during fast rallies. - This is a sophisticated strategy that assumes your brokerage supports levered and volatility-based ETFs and that you’re comfortable with daily rebalancing and their associated fees and tax implications. - As with any rule-based strategy, performance depends on the quality of inputs (momentum signals) and the stability of relationships between the included ETFs; regimes can shift, reducing effectiveness. In short: a daily, rule-driven mix that toggles between hedges and bets on tech/market strength, driven by momentum indicators and volatility signals, with frequent rebalancing and a significant emphasis on risk management through hedging.

Volatility-Theory: a daily, RSI-driven tactical strategy hedging risk and tilting to tech momentum. Out-of-sample: Sharpe ~0.44; return ~11%; max drawdown ~23%. It offers diversification and risk-managed participation beyond SPY.