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Symphonies
EM ftlt from 2007 @ 2 Sharpe | Version 2
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A tactical emerging‑markets sleeve that uses only ~25% of the portfolio and flips between 3x long (EDC) and 3x short (EDZ) based on oversold signals and simple bond‑vs‑stock momentum/trend checks. Keeps lots of cash and rebalances daily.
NutHow it works
- Only about 25% of your account is used for this idea; the rest stays in cash. - It trades just two funds: a 3x “up” EM fund (EDC) and a 3x “down” EM fund (EDZ). - Step 1: If emerging‑market stocks (checked via EEM) look very beaten‑down recently (RSI < 30), it buys the 3x “up” fund for a rebound. - Step 2: Otherwise, it looks at a few simple clues to choose up or down: is cash (T‑bills) trending up, is EM above its long‑term average, and which has stronger recent momentum—bonds or stocks. Based on those, it flips to the 3x up or 3x down fund and keeps a small cash buffer inside the 25%. - It rebalances daily. When its clues disagree, it may partly offset itself (less net exposure).
CheckmarkValue prop
Out-of-sample Sharpe 1.37 vs 0.91, Calmar 1.79, alpha 0.57, and 76.7% annualized return. A disciplined 25% EM sleeve with cash buffer offers dramatically higher risk-adjusted upside vs the S&P 500, with built-in hedging.

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Invest in this strategy
OOS Start Date
Oct 12, 2024
Trading Setting
Daily
Type
Stocks
Category
Emerging markets, tactical, leveraged etfs, momentum, relative strength, trend, long/short, daily rebalance
Tickers in this symphonyThis symphony trades 8 assets in total
Ticker
Type
EDC
Direxion Daily Emerging Markets Bull 3X Shares, Shares of beneficial interest, no par value
Stocks
EDZ
Direxion Daily Emerging Markets Bear 3x Shares
Stocks
EEM
iShares MSCI Emerging Markets ETF
Stocks
IEI
iShares 3-7 Year Treasury Bond ETF
Stocks
IGIB
iShares Trust iShares 5-10 Year Investment Grade Corporate Bond ETF
Stocks
IWM
iShares Russell 2000 ETF
Stocks
SHV
iShares Trust iShares 0-1 Year Treasury Bond ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
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.

The symphony is currently performing the same as yesterday today. Performance updates in real time during market hours.

The symphony is currently allocated toEDC. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, the symphony has returned 82.73%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for the symphony is 42.75%. 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 the symphony, 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.