A high-risk, daily-rebalanced, rule-based strategy that uses a web of momentum and price signals to tilt into leveraged equity bets (and hedges) across tech/semiconductors, mega-caps, sectors, and Treasury/volatility plays. It blends RSI/Momentum rankings, price-relativity to SPY, and a layered “frontrunner” screen with risk-off hedges (VXX, TMF/SHY) to attempt to ride trends while providing defense in downturns. Expect high volatility and drawdowns due to heavy use of 3x levered ETFs and a dense, nested decision tree.

- The system runs a daily set of rules that decide which ETFs to hold. It reads signals from momentum and price-history indicators (like RSI and moving averages) on a mix of assets, including broad market ETFs (SPY/QQQ), sector/leverage plays (TQQQ, TECL, SOXL, SOXS, SPXL, SQQQ, etc.), treasury/defense plays (TLT, TMF, SHY, TMV), volatility proxies (VXX), and select commodity names (DBC, PDBC, etc.). - It starts with a Simple 2025 Signal block, which uses short-term momentum checks (e.g., RSI thresholds on specific tickers) to determine whether to tilt toward bullish leveraged bets or to seek hedges. If RSI on a given instrument is below a threshold, the system may favor a bull tilt with a 3x ETF; if not, it may switch to other leaders or to defensive hedges. - A nested Frontrunner group (KMLM Frontier/“Frontrunner”) then takes the signals from the simple layer and screens a broad universe to pick top (or bottom) performers based on short-window momentum/return criteria. This often results in holding 1 asset from a group (select-n “1”) with a “bottom/top” selection rule and a moving-average/return-based ranking. There are many branches that can funnel into a core group of 1 to 3 tickers for deployment, sometimes including multiple ETFs in a bundle, all allocated with weights close to 100% within that basket. - The strategy also includes a heavy risk-off/defense framework. When momentum signals weaken, it pivots into hedges and safer assets (e.g., VXX-related paths, TMF for long-duration rates, SHY for safety, and SPX/GLD-type risk-off proxies). The defense blocks are labeled as Defense | Modified and various sub-groups (A, B, C) focused on volatility, treasury exposure, and diversified hedges. - There are price-relativity checks against SPY and against moving-average price relationships (e.g., exponential moving averages comparing SPY to SPY’s moving average, or comparing SPY to TLT’s moving average), used to decide whether to favor equities, leverage, or safety assets. - Weights are often shown as a full 100/100 allocation within a chosen basket, implying the system commits fully to the selected set of assets for that rebalance cycle, with the odds of multiple baskets active only if the logic routes to multi-basket structures. This creates an aggressive posture during favorable regimes and a defensive posture during risk-off regimes. - The cadence is daily rebalance, which means the decision tree recalculates every day and reallocates capital accordingly, resulting in frequent turnover and sensitivity to short-term volatility. - In practice, the user-facing behavior is: on any given day you may be in a risk-on bull tilt (holding 3x levered bets on growth/tech sectors), a mixed tilt across several leaders, or a defensive tilt (holding hedges and Treasury-related plays), driven by the chain of RSI, moving-average, and price-relativity checks across a broad universe. The structure is designed for rapid adaptation to regime shifts, but it carries substantial risk due to the leverage and the complexity of the decision nodes.

Dynamic, rule-based strategy uses momentum, leverage, and hedges to ride leadership and protect on risk-off days. In out-of-sample testing, it delivers outsized upside versus SPY with a high Calmar (~4), but accepts higher drawdowns.