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Symphonies
FDN VS XLU WM 74
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily, binary momentum strategy: if FDN’s 21-day momentum beats XLU’s, go all-in on TQQQ; otherwise park in BIL. 100% allocation to a single asset each day, with leverage and sector-timing risk baked in.
NutHow it works
Each day: 1) Measure momentum: compute the 21-day RSI for FDN (internet sector) and for XLU (utilities sector). 2) Compare: if RSI(FDN) is higher than RSI(XLU), the system bets on strength in internet/tech by buying TQQQ (3x Nasdaq-100). 3) Else: put the money into BIL (short-term U.S. Treasuries) for safety. 4) Rebalance daily, fully allocating to the chosen asset (no diversification across multiple assets). Notes: TQQQ is a high-risk, high-reward levered ETF; BIL is a low-risk, cash-like ETF. The strategy rotates between a leveraged equity exposure and a cash-like position based on a simple momentum signal between two sector ETFs.
CheckmarkValue prop
Out-of-sample edge: ~30.7% annualized return vs ~18.5% S&P 500, Calmar ~1.32, beta ~0.79. Binary momentum between leveraged tech and cash offers strong risk-adjusted upside, with higher drawdowns in downturns.
1M
3M
6M
YTD
1Y
3Y
Max
www.composer.trade
Performance
Compared to selected benchmarks
AlphaBetaR2R
SPY
0.191.210.310.56
Performance Metrics
Cumulative ReturnAnnualized ReturnTrailing 1M ReturnTrailing 3M ReturnSharpe Ratio
SPY
726.91%14.06%-1.77%0.2%0.85
FDN VS XLU WM 74
12,106.52%34.86%0.27%10.68%0.99
Initial Investment
$10,000.00
Final Value
$1,220,651.86
Regulatory Fees
$3,104.61
Total Slippage
$16,796.90
Invest in this strategy
OOS Start Date
Sep 13, 2024
Trading Setting
Daily
Type
Stocks
Category
Momentum; sector rotation; leveraged etfs; binary allocation; tactical timing
Tickers in this symphonyThis symphony trades 4 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
FDN
First Trust Dow Jones Internet Index Fund ETF
Stocks
TQQQ
ProShares UltraPro QQQ
Stocks
XLU
State Street Utilities Select Sector SPDR 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.

"FDN VS XLU WM 74" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"FDN VS XLU WM 74" is currently allocated toBIL. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "FDN VS XLU WM 74" has returned 28.04%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "FDN VS XLU WM 74" is 23.17%. 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 "FDN VS XLU WM 74", 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.