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Symphonies
Beta Hedge 3.0
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A fast, rules-based “risk-on/risk-off” plan: buy 3x tech after sharp selloffs, buy volatility when tech is overheated, otherwise use a trend filter to rotate into a defensive basket in downtrends and diversified equities in uptrends.
NutHow it works
1) Check QQQ's heat (QQQ tracks big tech; RSI is a 0-100 score; <30 = washed out, >80 = overheated). - If <30: buy a 3x tech fund to chase a rebound. - Else if >80: buy a VIX fear fund that jumps when markets stumble. - Else check the S&P 500 vs its 200-day average (trend). If below: if the last 10-day worst drop >5% buy a slower VIX fund; else hold a defensive mix (anti-beta long/short, 7-10yr Treasuries, gold, consumer staples). If above: hold dividend stocks, global momentum, value+momentum, and the S&P 500.
CheckmarkValue prop
Out-of-sample edge: annualized return 39.5% vs S&P 22.3%, Calmar 1.68. A rules-based risk-on/risk-off rotation targets big upsides and volatility hedges, delivering higher upside with disciplined drawdown management.

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Invest in this strategy
OOS Start Date
Apr 9, 2023
Trading Setting
Threshold 10%
Type
Stocks
Category
Tactical allocation, risk-on/risk-off, volatility hedge, leveraged etfs, trend following, mean reversion
Tickers in this symphonyThis symphony trades 12 assets in total
Ticker
Type
BTAL
AGF U.S. Market Neutral Anti-Beta Fund
Stocks
GLD
SPDR Gold Trust, SPDR Gold Shares
Stocks
GMOM
Cambria Global Momentum ETF
Stocks
IEF
iShares 7-10 Year Treasury Bond ETF
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SCHD
Schwab US Dividend Equity ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
TECL
Direxion Daily Technology Bull 3x ETF
Stocks
UVXY
ProShares Ultra VIX Short-Term Futures ETF
Stocks
VAMO
Cambria Value and Momentum 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.

"Beta Hedge 3.0" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Beta Hedge 3.0" is currently allocated toVAMO, GMOM, SPYandSCHD. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Beta Hedge 3.0" has returned 39.54%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Beta Hedge 3.0" is 23.49%. 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 "Beta Hedge 3.0", 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.