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Symphonies
Diversification at its Best
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A simple monthly trend-following mix across US stocks, overseas stocks, Treasuries, commodities, and real estate. Own each asset when its recent price is above its long-term average; otherwise hold short-term US government bonds. Equal-weighted.
NutHow it works
Once a month, it checks five areas: US large-company stocks (SPY), overseas developed-market stocks (EFA), US Treasury bonds around 7–10 years (IEF), a broad mix of commodities like oil/metals/crops (DBC), and US real estate trusts (VNQ). For each, it compares the recent average price (about 1 month) to the 200‑day average (about 10 months). If the recent trend is higher, that slice owns the ETF; if not, it parks in short‑term US government bonds (SHV). Each slice is equal sized, then rebalanced. It uses big, liquid ETFs as simple building blocks.
CheckmarkValue prop
Out-of-sample, a 5-asset trend strategy offers strong downside protection and diversification: drawdown ~8.9% vs ~22% for SPY, beta ~0.24, Sharpe ~0.68, Calmar ~0.52. Lower risk, steadier risk-adjusted returns than the S&P.

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Invest in this strategy
OOS Start Date
Feb 13, 2022
Trading Setting
Monthly
Type
Stocks
Category
Trend-following, global multi-asset, momentum, risk-managed, etf portfolio
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.

"Diversification at its Best" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Diversification at its Best" is currently allocated toDBC, EFA, IEF, SPYandVNQ. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Diversification at its Best" has returned 4.63%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Diversification at its Best" is 8.87%. 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 "Diversification at its Best", 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.