Drawdown/Skim Bots (USDU, no UUP)
Today’s Change (Mar 5, 2026)
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A symphony is an automated trading strategy — Learn more about symphonies here
About
Daily, rules-based bots lean into leveraged tech/stock funds in uptrends, rotate to USD, short Treasuries, and defensive sectors in downtrends, add a small UVXY hedge when markets look frothy, and sometimes short volatility in calm spells. Weights adapt to recent choppiness.
How it worksEach day the bots ask: is the market hot, normal, or cold? A short‑term “hot/cold” gauge flags extremes; a long‑term trend check says Bull vs Bear.
- Bull: load up on triple-stock funds (TQQQ=3x Nasdaq tech; SPXL/UPRO=3x S&P), sized by how choppy they’ve been. Sometimes add SVXY (profits when markets are calm) if bond signals say “calm.”
- Extreme heat: keep the bull stance but add a small UVXY hedge (jumps when fear spikes).
- Bear: rotate to SHY (short Treasuries), defensive sectors (XLP, XLU, XLE) and a long‑USD fund (USDU). USDU (not UUP) gives broader USD exposure and simpler taxes. Rebalanced daily.
Value propOut-of-sample Sharpe 1.78 vs 1.37, Calmar ~1.75, max drawdown ~11% vs ~19%, beta ~0.51. Raw return ~19.3% vs S&P ~22.5%, but with stronger risk‑adjusted gains and robust downside protection from adaptive trend and volatility hedges.
1M
3M
6M
YTD
1Y
3Y
Max
Performance
Compared to selected benchmarks
| Alpha | Beta | R2 | R | |
|---|---|---|---|---|
| 0.22 | 0.48 | 0.26 | 0.51 |
Performance Metrics
| Cumulative Return | Annualized Return | Trailing 1M Return | Trailing 3M Return | Sharpe Ratio | |
|---|---|---|---|---|---|
| 358.1% | 13.4% | -0.15% | 0.4% | 0.81 | |
| 2,619.47% | 31.39% | 1.47% | -0.38% | 1.75 |
Initial Investment
$10,000.00
Final Value
$271,946.88Regulatory Fees
$806.87
Total Slippage
$4,706.42
Invest in this strategy
OOS Start Date
Nov 6, 2022
Trading Setting
Daily
Type
Stocks
Category
Tactical allocation, trend following, volatility timing, leveraged etfs, dollar hedge, sector rotation, risk management
Tickers in this symphonyThis symphony trades 20 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
IEF
iShares 7-10 Year Treasury Bond ETF
Stocks
SHY
iShares 1-3 Year Treasury Bond ETF
Stocks
SPXL
Direxion Daily S&P 500 Bull 3x Shares
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SVXY
ProShares Short VIX Short-Term Futures ETF
Stocks
TECL
Direxion Daily Technology Bull 3x Shares
Stocks
TQQQ
ProShares UltraPro QQQ
Stocks
UPRO
ProShares UltraPro S&P 500
Stocks
USDU
WisdomTree Bloomberg U.S. Dollar Bullish Fund
Stocks