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Inverse Volatility - BTC/ETH Edition
Today’s Change

A symphony is an automated trading strategy — Learn more about symphonies here

About

BTC + ETH portfolio that shifts more weight to the coin that’s been calmer over the past 14 days and less to the jumpier one. Rebalanced daily to help keep ups and downs more even; it manages risk, not direction.
NutHow it works
Own Bitcoin and Ethereum. Each day, look back 14 days to see how “bumpy” each coin’s price has been (volatility = how widely it moved). Put more in the calmer coin and less in the jumpier one (weight ∝ 1/vol). Rebalance to those targets daily to steady the ride.
CheckmarkValue prop
Out-of-sample annualized return ~22.6% vs SPY ~22.2%. Inverse-vol BTC/ETH weights with daily rebalancing aim to smooth risk and offer higher long-run upside than the S&P 500, though crypto drawdowns can be sizable.

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Invest in this strategy
OOS Start Date
Jan 15, 2024
Trading Setting
Daily
Type
Crypto
Category
Crypto, bitcoin, ethereum, inverse volatility, risk management, risk parity, daily rebalancing
Tickers in this symphonyThis symphony trades 2 assets in total
Ticker
Type
BTC
Bitcoin
Crypto
ETH
Ethereum
Crypto

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.

"Inverse Volatility - BTC/ETH Edition" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Inverse Volatility - BTC/ETH Edition" holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Inverse Volatility - BTC/ETH Edition" has returned varies based on market conditions. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Inverse Volatility - BTC/ETH Edition" is varies based on market conditions. 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 "Inverse Volatility - BTC/ETH Edition", 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.