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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

A two-coin crypto strategy that shifts daily between Bitcoin and Ethereum based on recent volatility, giving more to the steadier coin to smooth ups and downs. 14-day lookback; always 100% in BTC/ETH.
NutHow it works
It holds Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies. Each day it checks which one has been bumpier over the last 14 days. It puts more money in the calmer coin and less in the choppier one, then rebalances to that mix. Goal: a steadier crypto ride.
CheckmarkValue prop
Out-of-sample performance shows higher potential returns than SPY (27.21% vs 22.78%), via inverse-volatility across BTC/ETH. But be aware of higher max drawdown (~45.66% vs 18.76%).

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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 parity, volatility targeting, daily rebalancing
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.

"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" is currently allocated toCRYPTO::BTC//USDandCRYPTO::ETH//USD. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Inverse Volatility - BTC/ETH Edition" has returned 27.21%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Inverse Volatility - BTC/ETH Edition" is 45.66%. 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, crypto, and options.