Strategies/ML Defensive

ML Defensive

Defensive Strategy

ML Defensive shares the same LightGBM sector-ranking stack as ML Aggressive, but it adds a continuous regime overlay that can scale total invested capital from roughly 15% to 100% based on market conditions. The bot still selects the top three ETFs from the 14-name universe, but when conditions deteriorate it deliberately leaves more of the portfolio in cash equivalents and parks residual capital in SGOV. The result is a lower-beta, capital-preservation version of the ML engine rather than a separate stock-picking model.

Moderate RiskWeeklyMachine learningRegime awareLive Alpaca account
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What it does

It ranks the same 14 ETFs as the aggressive bot, but then uses a regime model to decide how much capital should actually be risked before sweeping the rest into SGOV.

Best for

Investors who want the ML rotation engine with more explicit downside control and a built-in risk-off posture.

What to expect

Lower market exposure during stressed regimes, frequent periods with a meaningful SGOV sleeve, and smoother behavior than the aggressive bot in weak tapes.

Typical Holdings (Dynamic Strategy)

QQQXLCXLKSGOV

Representative basket only. The live bot dynamically holds the current top 3 model picks and can shift a large share of capital into SGOV when the regime score turns defensive.

Live Account Performance

● Real Alpaca Paper Account

Compare with

Normalised to $10,000 start. Data from live Alpaca paper account — reflects real orders, real fills, and real risk management decisions.

Backtest Simulation · Not Real Trading

5-Year Historical Simulation

Simulated using a multi-timeframe momentum proxy and inverse-volatility sizing — approximates the ML signal engine. Run scripts/generate_ml_backtest.py for exact results.

How It Actually Trades

Pro

Ready to put this strategy to work?

Open a paper position and track it against the market — no real money at risk.

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Live chart: real Alpaca paper account data. Simulation chart: historical price data from Yahoo Finance with representative fixed weights. Past performance does not guarantee future results.