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Symphonies
JM255 - TQQQ For The Long Term (Reddit Post Link) modified by JM 8-25-24
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Daily, rules-based market timer: ride TQQQ in uptrends; when things look overheated, switch to a 50/50 UVXY–T‑Bills mix. In downtrends, rotate among leveraged bull, inverse, or Treasury ETFs using simple short-term “hot/cold” readings.
NutHow it works
Each day: 1) Long-term trend: if SPY is above its 200‑day average (uptrend), hold TQQQ (3x Nasdaq‑100) unless a 10‑day RSI “heat gauge” says it’s too hot (>~80 on TQQQ or SPXL); then park 50/50 in UVXY (vol spike hedge) and BIL (T‑Bills). 2) If below the 200‑day (downtrend), use RSI and a 20‑day average to rotate among TECL/UPRO/TQQQ (bull), SQQQ (3x inverse QQQ), or TLT (Treasuries).
CheckmarkValue prop
Out-of-sample edge: ~65.6% annualized return vs ~18% for SPY; Sharpe ~1.09 vs ~1.03; positive alpha and Calmar ~1.31. High upside with higher drawdown risk (~50% vs ~19%); suited for risk-tolerant investors seeking outsized gains.

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Invest in this strategy
OOS Start Date
Aug 25, 2024
Trading Setting
Daily
Type
Stocks
Category
Trend-following and mean-reversion, rsi signals, 200-day filter, leveraged etfs, volatility hedge, treasuries/cash, daily rebalance
Tickers in this symphonyThis symphony trades 9 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
SPXL
Direxion Daily S&P 500 Bull 3x Shares
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SQQQ
ProShares UltraPro Short QQQ
Stocks
TECL
Direxion Daily Technology Bull 3x Shares
Stocks
TLT
iShares 20+ Year Treasury Bond ETF
Stocks
TQQQ
ProShares UltraPro QQQ
Stocks
UPRO
ProShares UltraPro S&P 500
Stocks
UVXY
ProShares Ultra VIX Short-Term Futures 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.

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

The symphony is currently allocated toTQQQ. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, the symphony has returned 48.17%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for the symphony is 50.19%. 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, and options.