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Symphonies
JM256 - SPXL For The Long Term (Reddit Post Link) by JM
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Rides S&P 500 uptrends with 3x leverage (SPXL), briefly shifts to volatility (UVXY) when markets look overheated, and in downtrends either buys dips, goes short tech (SQQQ), or moves to long Treasuries (TLT). Very high risk.
NutHow it works
Daily check. 1) If the S&P 500 (SPY) is above its 200‑day trend, hold SPXL (3x S&P). But if a 10‑day RSI “heat meter” says tech (TQQQ) or SPXL is very hot (>~80), briefly flip to UVXY (volatility). 2) If below trend, buy sharp dips with SPXL/UPRO when RSI <~30; otherwise pick SQQQ (‑3x Nasdaq) or TLT (Treasuries) based on which is stronger.
CheckmarkValue prop
Out-of-sample edge: ~44.6% annualized return vs ~18% for the S&P, with Calmar ~1.04—strong risk-adjusted gains. Note larger drawdowns (~43% vs ~19%). Dynamic trend/volatility timing aims for substantial upside.

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Invest in this strategy
OOS Start Date
Aug 25, 2024
Trading Setting
Daily
Type
Stocks
Category
Leveraged etfs, trend following, tactical allocation, volatility timing, daily rebalanced, risk-on/risk-off
Tickers in this symphonyThis symphony trades 7 assets in total
Ticker
Type
SPXL
Direxion Daily S&P 500 Bull 3x ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SQQQ
ProShares UltraPro Short QQQ
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 toSPXL. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, the symphony has returned 28.23%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for the symphony is 43.00%. 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.