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Symphonies
5-50D RSI Mean Reversion V2
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A rules-based, buy-the-dip/sell-the-rip strategy for semiconductors. It sizes 3x bull/bear ETF positions by how “stretched” prices are (RSI) and by volatility, adds hedges in rough markets, and defaults to simple trend-following when conditions are calm.
NutHow it works
What it trades: semiconductors via SMH (chip ETF), SOXL (3x bull chip ETF), SOXS (3x bear chip ETF). Hedges: UVXY/VIXM (volatility), UUP (US dollar), SHY (short-term Treasuries). RSI is a 0–100 “stretched” score: low = oversold, high = overbought. The strategy checks SMH’s RSI over 5–50 days. If RSI is low (<36), it scales into SOXL; if high (>70), it scales into SOXS. Bigger/more windows = bigger position. It classifies markets by volatility (using UVXY’s RSI) and then reacts to today’s SMH move: big drops trigger SOXL (often 70% SOXL + 30% hedge); big spikes tilt to SOXS with some bonds. In calm uptrends, it may simply hold SMH or the 5 strongest chip stocks. If trends weaken, it chooses the safer of SOXS or SHY. Rebalancing uses an 8% drift band.
CheckmarkValue prop
Semiconductor-focused, rules-based strategy targets outsized upside: ~56% annualized out-of-sample vs ~21% for the S&P, using RSI-based sizing and hedges to capture chip mean-reversion. Potential returns come with higher volatility and drawdowns.

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Invest in this strategy
OOS Start Date
Sep 20, 2022
Trading Setting
Threshold 8%
Type
Stocks
Category
Semiconductors, mean reversion, volatility regimes, leveraged etfs, tactical trading, hedged
Tickers in this symphonyThis symphony trades 0 assets in total
Ticker
Type

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.

"5-50D RSI Mean Reversion V2" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"5-50D RSI Mean Reversion V2" is currently allocated toSOXLandSOXS. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "5-50D RSI Mean Reversion V2" has returned 56.24%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "5-50D RSI Mean Reversion V2" is 59.34%. 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 "5-50D RSI Mean Reversion V2", 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, crypto, and options.