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Strategies/Regime Detector

Regime Detector

StaticProaggressive

Based on research by Neat_Bug1775 (Reddit) · Neat_Bug1775 (Reddit). Regime Detector

This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.

Launched 2024
momentumleveraged

About this Strategy

Multi-signal regime detection system for SSO/SHV rotation. Monitors 6 macro indicators (price trend, VIX, ADX, credit spreads, canary assets, breadth) to build a composite score.

The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.

Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.

Strategy Rules

Pro subscribers only

  1. 1Compute 6 daily signals: price trend, VIX level, ADX direction, credit ratio, canary, breadth
  2. 2Each signal contributes +1, 0, or -1 to composite score (-6 to +6)
  3. 3When risk-on: slow exit if score <= 0 for 15 days, fast exit if score <= -3 for 3 days
  4. 4When risk-off: re-enter if score >= +2 for 7 consecutive days
  5. 5Binary allocation: 100% SSO or 100% SHV

Key Differentiators

Daily signalsTactical rotationAggressive riskLeveragedMomentum-based2 variants

Research Source

N(

Based on research by Neat_Bug1775 (Reddit)

Neat_Bug1775 (Reddit). Regime Detector

Strategy Info

Type
Tactical (TAA)
Frequency
daily
Next Rebalance
May 2209:30 ET (today)
Variants
2
Risk Category
aggressive
Tags
momentum, leveraged
Type
Tactical / Leveraged Rotation
Trading Frequency
Daily (signals on regime change only)
Signal Count
6 macro indicators, composite score -6 to +6
Price Trend
SPY vs 200-day SMA with 3-day hysteresis
Volatility
VIX levels (< 20 bullish, > 30 bearish)
Credit Spreads
HYG/LQD ratio vs 50-day SMA
Slow Exit
Score <= 0 for 15 consecutive days
Fast Exit
Score <= -3 for 3 consecutive days
Reentry
Score >= +2 for 7 consecutive days
Risk On Asset
SSO (2x S&P 500) or UPRO (3x SmartLeverage variant)
Risk Off Asset
SHV (short-term treasuries)
Data Source
Institutional-grade market data (SPY, ^VIX, HYG, LQD, EEM, IWM, RSP)

Asset Classes

US Equity (2x/3x Leveraged)Short-Term Treasuries

Regime Detector at a glance

Regime Detector is a tactical asset allocation (TAA) strategy by Neat_Bug1775 (Reddit) across US Equity (2x/3x Leveraged), Short-Term Treasuries, rebalanced daily. Backtested 1990-10-09 to 2026-05-21 (35.6 years): 12.7% CAGR, 0.62 Sharpe, -67.9% max drawdown, 23.9% volatility.

Type
Tactical (TAA)
Author
Neat_Bug1775 (Reddit)
Rebalancing
Daily
Risk
Aggressive
Period
1990-10-09 to 2026-05-21
CAGR
12.7%
Sharpe
0.62
Max Drawdown
-67.9%
Volatility
23.9%

Regime Detector Tactical Asset Allocation Strategy

Regime Detector is a composite scoring system by Reddit user Neat_Bug1775 that monitors 6 macro signals daily to determine whether to hold SSO (2x S&P 500) or SHV (short-term treasuries).

The six signals each contribute +1, 0, or -1 to a composite score (-6 to +6): price trend (SPY vs 200-SMA with 3-day hysteresis), VIX level, ADX(14) trend strength, credit spreads (HYG/LQD ratio vs 50-SMA), canary universe (HYG/EEM/IWM vs 50-SMA), and market breadth (RSP/SPY ratio vs 50-SMA).

Backtest Performance (1990-10-09 to 2026-05-21)

MetricRegime Detector
Compound Annual Growth Rate (CAGR)12.7%
Maximum Drawdown-67.9%
Sharpe Ratio0.62
Sortino Ratio0.72
Annualized Volatility23.9%
Calmar Ratio0.19
Total Return7052.6%
Backtest Period35.6 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
daily
Risk Level
aggressive
Variants
2
Author
Neat_Bug1775 (Reddit)
Source
Neat_Bug1775 (Reddit). Regime Detector

Asset Classes

  • US Equity (2x/3x Leveraged)
  • Short-Term Treasuries

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Disclaimer: BestFolio is an informational tool only and does not provide investment advice, recommendations, or solicitations to buy or sell securities. All strategy signals, backtests, and performance metrics are provided for educational and research purposes. Past performance is not indicative of future results. You are solely responsible for your own investment decisions. BestFolio is not a registered investment advisor, broker-dealer, or financial planner. Always consult a qualified financial professional before making investment decisions.

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