A daily, single-asset rotation into leveraged ETFs triggered by short-term momentum/oversold signals, prioritizing semiconductors, QQQ, then SPY, with fallback defenses via volatility and sector signals. High upside, high risk.

What you’re seeing is a daily decision tree that picks a single asset to own, based on simple momentum signals. Here’s the plain-language rundown: 1) First rule (very aggressive): Look at the semiconductor group (SMH). If its short-term momentum signal is extremely oversold (RSI under 23), the strategy buys SOXL, a 3x levered bet on semiconductors, with 100% of the capital. 2) If that first trigger doesn’t fire, check the Nasdaq-100’s momentum signal (QQQ). If QQQ’s short-term momentum is oversold enough (RSI under 28), switch to TQQQ (a 3x levered bet on QQQ). 3) If neither of the above fires, check the broad market (SPY, proxy for the S&P 500). If SPY is oversold on a short window (RSI under 28), allocate to UPRO (a 3x levered S&P 500 bet). 4) If none of the three core oversold signals triggers, the logic moves into a longer, more complex set of checks that involve fear/volatility signals (VXX) and sector/quality rotations (various ETFs like VOX, XLP, XLY, XLY-like groups, and others). The idea is to shift toward defensive or more stable exposures if volatility fear is high or if certain sectors look comparatively stronger on longer signals. The key is that you hold only one ETF at a time (100% exposure) and you rebalance daily to the asset the rules called for that day. 5) The approach uses RSI (relative strength index) as the main trigger. RSI is a measure that interprets recent upward/downward price moves to gauge whether an asset is unusually overbought (too high) or oversold (too low). Low RSI suggests a potential rebound; high RSI suggests a pullback. The thresholds here (23, 28, 79 in some branches) are deliberately aggressive, aiming to catch short-term reversals. 6) The design includes a few defensive/outlier checks (e.g., VXX-related rules and consumer staples/other sectors) to avoid staying fully exposed in high-volatility regimes. However, the exact behavior in those branches is complex and would best be understood by tracing the full decision tree in a backtest or live run. Overall, the strategy targets quick rotations into high-mlyk upside bets when momentum signals align, while attempting to protect against rising fear by routing to defensive exposures when indicated. Important caveats: leveraged ETFs multiply both gains and losses; daily rebalancing can distort long-run results; the decision tree is intricate and sensitive to threshold choices and timing. You should expect substantial drawdowns in choppy markets and potential for large upside in strong uptrends.

Disciplined daily rotation into 3x levered ETFs (semis/QQQ/SPY) via momentum signals. Low beta (~0.23) and Calmar ~1.05 with oos Sharpe ~0.58 offer diversification and risk-aware exposure to tech upswings, complementing SPY.