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Symphonies
Inflation/Deflation Based Risk Algorithm - Using Bond environment to determine risk triggers
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Macro first (commodities vs Treasuries) to pick inflation or deflation. Then risk‑on/off from sector and momentum signals. It rotates into growth in inflationary risk‑on, shifts to commodities/defensives and hedges in stagflation, and favors Treasuries/defensives in deflationary stress.
NutHow it works
1) Macro: inflation or deflation? It compares trends in commodity metals (DBB) vs long US bonds (TLT). 2) Risk: inside that regime, risk‑on or risk‑off? It checks who’s winning (cyclicals vs defensives like XLB vs XLU, VNQ vs DBC) and a hot/cold gauge (RSI 0–100; >70 hot, <30 cold). 3) It then buys baskets that fit the scene, adding VIX and inverse‑ETF hedges when too hot. Sizes by inverse‑vol; rebalanced daily.
CheckmarkValue prop
Out-of-sample, this macro-rotation strategy delivers risk-adjusted gains with lower downside and diversification: beta ~0.29, max drawdown ~3.3% vs SPY ~5.1%, Sharpe ~1.10, Calmar ~2.53, across inflation/deflation regimes.

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Invest in this strategy
OOS Start Date
Jun 5, 2025
Trading Setting
Daily
Type
Stocks
Category
Macro regime rotation, inflation vs deflation, sector rotation, risk-on/off, hedged, inverse/volatility etfs, commodities vs bonds, daily rebalance
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.

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

The symphony is currently allocated toEEV, IAI, DBA, USL, SZK, IHF, KIE, TWM, BTAL, XLE, ITA, SRS, XLU, GLD, BIS, TMV, DBBandUNL. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, the symphony has returned 8.23%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for the symphony is 3.26%. 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, crypto, and options.