A simple, rule-based strategy using QQQ's 10-day RSI to decide: (a) if very overbought, shift to a volatility hedge (VXX); (b) if very oversold, go all-in on a leveraged tech bet (TQQQ); (c) otherwise, pick the weakest among XLP, IGLB, and QQQ by RSI and invest 100% there. Rebalanced daily; aims to balance momentum triggers with a safety/rotation in neutral times.

What RSI does and how it’s used here: RSI compares recent gains and losses to gauge momentum. Readings near 100 mean rally momentum is very strong (potential overbought), readings near 0 mean price momentum is very weak (potential oversold). In this strategy, a 10-day RSI on QQQ is used with thresholds: > 79 triggers a hedge by buying VXX (volatility proxy) as a short/defense against a potential drop; <= 28 triggers a high-conviction long in TQQQ (3x QQQ) if the signal is strong enough; otherwise, the strategy looks at three assets (XLP, IGLB, QQQ) and picks the one with the lowest RSI over the last 10 days, then buys that single asset with full allocation. The plan rebalances every day. Asset list: VXX (volatility proxy), TQQQ (3x QQQ), QQQ (Nasdaq-100), XLP (Consumer Staples), IGLB (Investment-Grade Bonds). The aim is to exploit extremes in QQQ momentum for big moves, while providing a safety net via a single defensive or less-volatile pick in neutral conditions. Risk notes in plain terms: VXX can go up when markets calm but tends to spike when volatility rises; TQQQ magnifies gains and losses on QQQ; sticking to one asset at a time reduces diversification but keeps the rule simple. Rebalancing daily means the system continually tests and adopts the latest signal.

Out-of-sample edge: OOS return ~37.3% vs 28%, Sharpe ~2.68 vs 2.37, Calmar ~7.89, drawdown ~4.7% vs 5.1%. RSI-driven rotation plus a volatility hedge offers higher upside with tighter risk than the S&P 500.