A daily, all-in sector-timing strategy between XLF (long) and SKF (2x inverse) for the Financials sector, driven by RSI and moving-average signals to switch bets and rebalance daily.

Every trading day, the strategy looks at two assets: XLF (financial sector ETF) and SKF (2x levered inverse financials ETF). It runs a series of momentum and trend checks (based on RSI-style indicators and price vs. moving averages). If the conditions indicate the sector is likely to rise, the model goes long XLF (100% of the portfolio). If the conditions indicate weakness or excessive momentum on the downside, it shifts to SKF (short the sector, 100%). The process repeats daily with a full reallocation to one asset. The logic uses various windows (short-term like 2–5 days, mid-term like 20 days, and longer-term like 50–200 days) and thresholds to determine signals, including whether XLF is above its longer-term moving average (e.g., 200 days) or whether RSI on SKF or XLF surpasses certain levels. Note that SKF is a levered inverse ETF, so movements are magnified and risk is higher during volatile periods.

Daily sector-timing between XLF and SKF aims to ride financials uptrends and limit losses. In out-of-sample tests, it shows lower drawdown (15.5% vs 18.8% SPY) and tighter risk control, offering a risk-managed complement to the S&P 500.