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2X Leveraged Index Simplified
Today’s Change

A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily-rebalanced, 2x levered equity strategy using a 50/200-day moving-average cross to identify uptrends, with hedges (volatility and bonds) and selective levered ETFs to manage risk in choppy markets.
NutHow it works
What it tries to do in plain language: - It watchs the market to see if it’s in an uptrend (short-term trend above a longer-term trend). If yes, it mainly buys 2x versions of stock markets to try to amplify gains. - It also looks at short-term signals on tech and the market to decide exactly which levered ETFs to own (for example, 2x S&P, 2x Nasdaq, or tech-focused LEVERAGED funds). - When signals look risky (high volatility or the market isn’t clearly rising), it uses hedges or moves to safer assets like bonds or cash to limit losses. - It rebalances every day, so the exact mix can change daily based on the current signals. This daily reset helps adapt to changing conditions but also means returns depend on the path of the market. - The strategy draws on research that suggests leveraging long-run uptrends with hedging can, in theory, produce good long-run results if signals are timely and risk controls are in place. - Important caveat: leveraging magnifies both gains and losses, and the results can differ a lot from plain, unlevered investing, especially in volatile or sideways markets.
CheckmarkValue prop
Out-of-sample: ~25.6% annualized return vs SPY ~17.5%, Calmar ~0.61, with daily 2x levered exposure and hedges to ride uptrends while seeking to manage risk. Note: max drawdown ~41.8%, higher than SPY.

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Invest in this strategy
OOS Start Date
Jul 22, 2024
Trading Setting
Daily
Type
Stocks
Category
Leveraged equity, trend-following, volatility hedge, risk-control, daily rebalance, tactical asset allocation
Tickers in this symphonyThis symphony trades 8 assets in total
Ticker
Type
IEF
iShares 7-10 Year Treasury Bond ETF
Stocks
QID
ProShares UltraShort QQQ
Stocks
QLD
ProShares Ultra QQQ
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
ROM
ProShares Ultra Technology
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SSO
ProShares Ultra S&P500
Stocks
UVXY
ProShares Ultra VIX Short-Term Futures ETF
Stocks

FAQ

A Composer symphony is an automated trading strategy that executes trades based on parameters of your choice. Some symphonies are similar to holding one ETF in normal conditions and rotating to a different ETF when market conditions shift, for example a 5% drop in the S&P 500, while others use complex rules with dozens of triggers. However, complex doesn’t always mean better. A simple, well-structured symphony can be just as effective as an intricate one. Learn more about how symphonies work here.

"2X Leveraged Index Simplified" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"2X Leveraged Index Simplified" is currently allocated toQLD. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "2X Leveraged Index Simplified" has returned 15.28%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "2X Leveraged Index Simplified" is 41.79%. The maximum drawdown measures the largest peak-to-trough decline. It's an important metric to evaluate risk and the strategy's behavior during market stress.

To invest in "2X Leveraged Index Simplified", simply click the Invest button on this page. You'll need to open an account with Composer if you don't have one yet, then you can start investing. Composer will automatically execute the trades for you based on the strategy's rules. Composer also supports trading individual stocks, ETFs, and options.