How the System Works

One System. Many Expressions. ● LIVE

A systematic multi-strategy consensus engine that classifies the market into one of four states each day, then adapts positioning to preserve capital and capture opportunity. Validated in historical simulations across multiple instruments, leverage levels, and 41 years of market history.

📊 18 validation tests · 6 markets, 3 leverage levels · 8/8 positive in 2008

Decision Framework

A deterministic three-stage pipeline runs every trading day, just before the close.

Stage 1 · Classify

Market Signals → Market State

Daily-close market data feeds a multi-strategy consensus layer that reduces today's conditions to one of four states.

Output: Expansion · Trend · Neutral · Contraction
Stage 2 · Position

State → Target Allocation

Each state maps to a target long / short / cash allocation, adjusted by signal strength and stability controls.

Output: target position % + reasoning code
Stage 3 · Execute

Target → Broker Orders

Insights subscribers receive the target; PRO users have their connected broker rebalanced at market close.

Output: filled positions + execution events

How the system controls risk

Exposure is adjusted daily based on market conditions — not fixed allocations.

🛡️ Volatility-Adaptive Overlay

Exposure dynamically adjusts in response to changing market stress and stability conditions, enabling the system to adapt across varying volatility environments.

📉 Adaptive Exposure Scaling

Exposure adjusts based on the current market environment, balancing participation and risk as conditions evolve.

⏸️ Position Stability Controls

The system maintains disciplined position management to reduce unnecessary turnover during evolving market conditions.

💰 Execution Discipline

Trades are executed using a consistent end-of-session framework to align with system signals and reduce intraday noise.

The Four Market States

Every trading day is classified into one of four states. Each state implies a posture — not a prediction.

Expansion

Full Participation

Broad-based directional strength with persistent momentum. The system favors maximum exposure in aligned environments.

Trend

Selective Participation

Sustained directional movement with developing conviction. The system maintains selective participation while confirming strength.

Neutral

Capital Preservation

Balanced conditions with no clear directional dominance. Positioning remains conservative while awaiting clearer trend confirmation.

Contraction

Protection

Adverse conditions with elevated instability. The system prioritizes capital preservation and defensive positioning.

Under the hood: the system maintains a richer set of internal sub-states that are reduced to the four public states at presentation time. We expose the simpler taxonomy because it's the one that changes your positioning — the internal distinctions affect strategy weighting inside the consensus layer, but the four-state output is what drives every trade.

How decisions are formed

Multiple independent assessments evaluate the market — positioning only changes when they agree.

Directional

Multi-model
Directional models

Expansion

Multi-model
Expansion dynamics

Reversion

Multi-model
Reversion signals

Range

Multi-model
Range-based signals
🎯

Multi-Cluster Consensus Required

Each framework votes independently with capped position weights. Full capital deployment requires confirmation across multiple frameworks — no single signal source can drive full allocation. This prevents false signals from dominating and smooths returns across market cycles.

How the system is applied

JEDI translates positioning into market exposure through leveraged instruments — applied actively, not as buy-and-hold.

Capital-efficient exposure

Amplified directional view with a smaller share of notional capital.

Steps aside in adverse conditions

Sidesteps the choppy periods where leveraged-ETF decay hurts most.

Adjusts daily — not fixed allocation

Positioning is reassessed every trading day.

Default Expression: Nasdaq-100 (3×)

This is the default Nasdaq-100 (3×) expression — the same system applies across all supported markets and leverage levels.

In this expression, JEDI translates positioning into leveraged long and inverse Nasdaq-100 instruments.

TQQQ — ProShares UltraPro QQQ

3× LONG

Seeks to amplify Nasdaq-100 returns through leveraged long exposure. JEDI utilizes this instrument to participate in sustained directional market environments.

EXPOSURE
Dynamic
LEVERAGE
DIRECTION
Long NDX

SQQQ — ProShares UltraPro Short QQQ

3× SHORT

Provides inverse leveraged exposure to the Nasdaq-100. JEDI utilizes this instrument to express defensive positioning during adverse market conditions.

EXPOSURE
Dynamic
LEVERAGE
DIRECTION
Short NDX

What this isn't

Calibrating expectations is more honest than hiding limits.

Not a stock picker

JEDI takes no view on individual securities. It positions the entire Nasdaq-100 as a single instrument based on the market state — company-specific research, earnings, and fundamentals are out of scope.

Not a prediction model

The system identifies the current state — it does not forecast which state will come next. When conditions shift, the classification shifts with them, usually a day or two later.

Not buy-and-hold

The strategy requires daily monitoring and rebalancing. Insights subscribers get the guidance; PRO users automate it. Either way, it's not suitable for mandates that prohibit active trading.

Not tax-optimized

Frequent rebalancing generates short-term gains in taxable accounts. Cost-basis tracking and tax-lot optimization are planned features but not yet shipped. Consider running this in a tax-advantaged account.

Where the system has been tested and validated

Validated in the worst 14-year period for leveraged equities (2000–2013), and across multiple markets and leverage levels using the same unchanged parameters.

Markets

6 markets — NDX, SPX, DJIA, Russell 2000, Nikkei 225, DAX

Leverage levels

3 leverage levels — 1×, 2×, 3×

History

41 years of historical market data (1985–2025)

Real fund data

Real leveraged-fund data through the 2000–2013 worst window

See full validation suite →
⚠ Disclaimer: All performance figures are from backtested simulation and do not represent actual trading results. TQQQ and SQQQ are leveraged ETFs subject to compounding effects, tracking error, and decay. They are not suitable for all investors. Past performance does not guarantee future results. JEDI is not a registered investment advisor. This platform is for informational and educational purposes only. Consult a qualified financial professional before investing.

What Would $10K Have Become?

$10K → $93M (since 2010)

Simulate different starting amounts across 41 years of backtested data.

Run full simulation →

Access live system positioning

Real-time market interpretation and positioning for the next session.