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Symphonies
Hedged Regime Switching 2.2
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily, tactical plan: read long‑term trend and short‑term “heat,” add a volatility hedge when markets run hot, buy dips in uptrends, and in downtrends shift to bonds, the dollar, or a defensive hedge using inverse tech and staples.
NutHow it works
Daily it checks trend (SPY vs its 200‑day average) and heat (10‑day RSI = speed/overheat). If SPY/QQQ (S&P 500 / Nasdaq‑100) run very hot, it hedges with UVXY (volatility). If vol spikes, it parks in BSV (short bonds) or PSQ (inverse QQQ). In uptrends, it buys the most “on‑sale” of SPY/QQQ or 2x funds; otherwise SHY (short Treasuries). In downtrends, it holds Treasuries or the US dollar; if deeply oversold it tries a QQQ rebound, else splits inverse QQQ with staples.
CheckmarkValue prop
Adaptive daily regime-switching with volatility hedges. Out-of-sample: ~36% annualized return vs ~23% S&P, solid risk-adjusted metrics (Calmar ~1.33, Sharpe ~1.33). Seeks upside in uptrends while guarding during volatility.

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Invest in this strategy
OOS Start Date
Sep 27, 2022
Trading Setting
Daily
Type
Stocks
Category
Regime switching, trend + mean‑reversion, volatility hedge, tactical rotation, leveraged/inverse etfs, daily rebalance, us equities/bonds/dollar, defensive sector
Tickers in this symphonyThis symphony trades 12 assets in total
Ticker
Type
BSV
Vanguard Short-Term Bond ETF
Stocks
PSQ
ProShares Short QQQ
Stocks
QID
ProShares UltraShort QQQ
Stocks
QLD
ProShares Ultra QQQ
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SHY
iShares 1-3 Year Treasury Bond ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SSO
ProShares Ultra S&P500
Stocks
TLT
iShares 20+ Year Treasury Bond ETF
Stocks
UUP
Invesco DB US Dollar Index Bullish Fund
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.

"Hedged Regime Switching 2.2" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Hedged Regime Switching 2.2" is currently allocated toSSO. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Hedged Regime Switching 2.2" has returned 32.32%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Hedged Regime Switching 2.2" is 27.22%. 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 "Hedged Regime Switching 2.2", 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.