A two-sleeve, volatility-aware strategy: (1) a water-infrastructure equity sleeve with explicit stock weights, rebalanced daily; (2) a sector-rotation sleeve that chases the top momentum sector among 11 ETFs, with volatility hedging via UVXY/SVXY and cash via BIL when risk is high. It uses moving-average momentum and UVXY-based risk signals to decide where to allocate, and it places a dedicated water-focused list (PNR, AWK, XYL, etc.) with a 27.5% weight in one branch and a broader sector rotation (60% or so) in another, all on a daily rebalance. The result is capital allocated mainly to water infrastructure exposure with a dynamic, risk-controlled, momentum-driven tilt across broad market sectors.

- The portfolio is split into two main parts: a water-focused equity sleeve and a sector-rotation sleeve. The water sleeve holds a list of water/utility/infrastructure stocks chosen with explicit weights and rebalances daily. The sector sleeve rotates into the top sector ETF (or its leveraged proxy) based on momentum (top performer over a moving-average window).- Volatility signals drive risk management: UVXY (volatility ETF) is monitored through a short-term RSI signal. If UVXY shows high risk (RSI signals) relative to sector indicators, the system leans toward cash or hedges (e.g., SVXY) and reduces aggressive equity exposure. If volatility signals are more favorable, it can overweight the top momentum sector using a mix that may include leveraged sector exposure (TECL) and hedging when appropriate.- Signals are nested in a lot of “if” checks. The RSI-based checks compare UVXY’s momentum with sector momentum (e.g., XLK, XLF, XLV, XLE, etc.). The top sector is chosen using a moving-average return ranking, often selecting a single best performer.- Cash/short-term futures hedges (e.g., BIL for cash, SVXY for hedging) are used when signals warn about risk. The portfolio is designed to be rebalanced daily, so positions can be adjusted as signals change.- Tickers and roles you’ll see (short list): UVXY (volatility hedge), SVXY (volatility hedge inverse), XLK/TECL (Technology ETF and 3x levered tech), XLF, XLV, XLE, XLB, XTL, XLRE, XLY, XLI, XLU, XLP (the 11 sector/building blocks), SPY (benchmark reference for water-sleeve tests), PNR, IR, CNM, WTRG, WMS, AWK, MWA, GTLS, XYL, TTEK, KBR, ERII, ECL, VLTO, WTS, BMI, ROP, IEX, DOV, MEG (water/infrastructure picks).- Overall, the strategy blends thematic exposure to water infrastructure with a disciplined, momentum-based sector rotation, tempered by volatility hedges and cash when risk is high.

Out-of-sample Sharpe ~1.66 vs SPY ~1.02; annualized return ~63% vs ~18%; Calmar ~2.57. Water-infra + momentum sector rotation, with volatility hedges and cash when risk rises—higher upside with disciplined risk vs S&P 500.