A daily RSI-based timing strategy on SPY that buys UPRO when SPY looks oversold, buys UVXY when SPY looks overbought, and otherwise bets 98% on either XLP or VBF based on recent weakness. Leverages and volatility hedging are used to try to beat SPY with a simple, rule-driven approach.

RSI is a number from 0 to 100 that helps judge recent price momentum. A low RSI often suggests a potential rebound after a drop; a high RSI can imply a pullback is due. In this strategy: - If SPY’s 10-day RSI is below 28, the model goes long UPRO (3x SPY exposure), seeking a sharp bounce after a selloff. - If SPY’s 10-day RSI is above 80, the model goes long UVXY (volatility exposure) to capture or hedge against rising market volatility. - If SPY’s RSI is between 28 and 80, the model shifts to a defensive tilt by choosing between XLP (consumer staples) and VBF (bond fund) based on which has weaker recent performance (lower RSI). It allocates 98% to that chosen asset, effectively concentrating on a single defensive bet. The plan rebalances every trading day, aiming to recreate a simple, rule-based path to outperform the market by riding extremes (oversold/overbought) and otherwise favoring stable, defensive assets.

RSI-driven, rule-based strategy acts as a tactical SPY satellite with hedges (UPRO/UVXY) and a defensive tilt. It diversifies risk with transparent rules. OOS return is modest (0.77%/yr vs SPY 20.43%), with drawdowns around 6%.