A daily, one-position strategy that uses bond-vs-small-stock strength to choose between a bullish list and a bearish list, then buys the recent laggard in that list. Very aggressive due to heavy use of leveraged and inverse funds.

Each day, the strategy checks whether U.S. government bonds (IEF) have been acting stronger lately than small-company U.S. stocks (IWM). It uses RSI, which is just a score of recent price strength. If bonds look stronger, it picks 1 aggressive “bullish” fund from a list like tech, semiconductors, the S&P 500, long bonds, or emerging markets. If small stocks look stronger, it instead picks 1 bearish fund that profits when areas like the Nasdaq, real estate, gold miners, or Treasury bonds fall. Within whichever list is active, it buys the one that has done the worst very recently, making this a short-term contrarian strategy.

Out-of-sample annualized return ~24.5% vs S&P 18%; regime-switching contrarian strategy using leveraged/inverse ETFs across bonds, stocks, and commodities. Higher upside with Calmar ~0.59, accepting larger drawdowns.