A complex, rule-based ETF system that uses short-term RSI momentum signals to assemble a near-zero-beta, dividend-oriented sleeve from volatility, treasury, dividend, and select equity ETFs. It blends defensive and risk-on elements, aiming for income with low market sensitivity, but relies on intricate thresholds and levered/volatility exposures.

- The system pools a set of ETFs that offer volatility exposure, bonds, dividends, gold, and broad equity themes. - It uses a short-term momentum rule (RSI over a 10-day window) to judge whether a given ETF is temporarily strong. When RSI crosses a threshold (e.g., greater-than some high level), that ETF becomes a candidate for inclusion. - Holdings are selected from groups with names like Red/Blue groups (e.g., Single Popped Dividends, Safety Town) and are often constrained to a small number (1–3) of assets. - Weights are usually equal within a selected group (e.g., 100% split across chosen assets), and the system tends to allocate based on which assets meet the RSI rule at that moment. - The strategy toggles between a core “Zero Beta Dividends” sleeve and a defensive “Safety Town” sleeve. The Safety Town sleeve emphasizes volatility hedges (volatility ETFs like UVXY/VIXM, SVXY), defensive dividend or anti-beta funds (BTAL, SCHD), and mix of treasuries and gold (TLT, SHY, GLD). - The levered and inverse elements (UVXY, SVXY, SPXL, TECL) are used to reshape risk and reward in different market regimes, with the goal of maintaining a low net market beta while capturing income-like or hedged returns. - Rebalancing appears limited (rebalance: none) with an explicit corridor width, implying conditional or custody-driven adjustments rather than daily reallocation. - The end product is a dynamic, rule-driven ETF portfolio that aims for low market beta and dividend-like income, but with substantial complexity and risk due to the use of leveraged/volatility exposures and multi-level RSI thresholds. - Real-world takeaways: this is not a simple buy-and-hold strategy. It requires monitoring the RSI signals across many assets, understanding how the leverage and volatility exposures behave in drawdown periods, and being mindful of costs and liquidity. If a layperson asks, think of it as a clever, automated decision tree that seeks to own a few income-focused or hedged ETFs when momentum looks favorable, and to slice risk with volatility-driven or treasury-based components when momentum signals suggest stress or hedging is warranted.

Out-of-sample, this strategy delivers superior risk-adjusted performance relative to the S&P: Sharpe ~1.63 vs 1.41, annualized return ~23% vs 22.5%, max drawdown ~9% vs ~19%, and near-zero beta for resilience and income.