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Symphonies
Broad Market 3 Liner (Monthly Trading)
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Simple monthly switch: Own QQQ when its short-term trend beats its long-term trend. Otherwise move to bonds—TLT if bond momentum is okay, SHY if weak. Focuses on big US tech or Treasuries. Backtested since 2003.
NutHow it works
Each month: If QQQ’s 1‑month average price is above its 10‑month average (an uptrend), buy QQQ (Nasdaq‑100, big tech). Otherwise, check TLT’s RSI (a 0–100 momentum score of recent gains vs losses): if it’s under 50 (weak), buy SHY (short‑term Treasuries); else buy TLT (long‑term Treasuries). Why: QQQ captures US growth/tech; TLT may offset stock drops; SHY is a safe parking spot when bonds are weak.
CheckmarkValue prop
Out-of-sample edge: ~21% annualized return with lower drawdown (~17.5% vs 18.8%), and beta ~0.79. QQQ in uptrends; Treasuries otherwise. Superior risk-adjusted/Calmar profile vs the S&P with monthly rebalancing.

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Invest in this strategy
OOS Start Date
Nov 30, 2022
Trading Setting
Monthly
Type
Stocks
Category
Trend-following, tactical allocation, monthly rebalance, momentum, moving average, rsi, equities, treasuries, risk-on/risk-off
Tickers in this symphonyThis symphony trades 3 assets in total
Ticker
Type
QQQ
Invesco QQQ Trust, Series 1
Stocks
SHY
iShares 1-3 Year Treasury Bond ETF
Stocks
TLT
iShares 20+ Year Treasury Bond 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.

"Broad Market 3 Liner (Monthly Trading)" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Broad Market 3 Liner (Monthly Trading)" is currently allocated toQQQ. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Broad Market 3 Liner (Monthly Trading)" has returned 18.40%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Broad Market 3 Liner (Monthly Trading)" is 17.54%. 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 "Broad Market 3 Liner (Monthly Trading)", 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.