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Symphonies
LABU
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

When LABU is deeply oversold (RSI < 22), buy the laggard between LABU and SOXL; otherwise stay in cash with BIL.
NutHow it works
- It constantly checks a simple momentum signal on LABU using RSI with a 10-day window. - If RSI(LABU, 10) < 22 (an unusually oversold condition), it then looks at two leveraged ETFs: LABU (biotech) and SOXL (semiconductors). - It picks the one that has performed worse in the very recent period (the bottom performer by a one-period return) and buys that asset with full weight (100%). - If RSI(LABU, 10) is not below 22, the strategy moves to cash by holding BIL (a short-term Treasury ETF). - Rebalancing is not frequent; there is a small 3% corridor to avoid churn, effectively limiting how much the position can drift before a new decision is considered. - The portfolio thus toggles between a highly leveraged sector bet (one of LABU or SOXL) and cash, depending on a single oversold signal on LABU. It is exposed mainly to biotech and semiconductors via the two 3x levered ETFs, with a cash cushion when not invested.
CheckmarkValue prop
Out-of-sample, this strategy offers far better risk-adjusted results than the S&P 500: ~1% drawdown vs ~19%, 14.7% annualized return, and an exceptionally high Calmar ratio.

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Invest in this strategy
OOS Start Date
Dec 8, 2023
Trading Setting
Threshold 3%
Type
Stocks
Category
Equities, leveraged etfs, momentum, contrarian, cash management
Tickers in this symphonyThis symphony trades 3 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
LABU
Direxion Daily S&P Biotech Bull 3X ETF
Stocks
SOXL
Direxion Daily Semiconductor Bull 3X 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.

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

"LABU" is currently allocated toBIL. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "LABU" has returned 14.01%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "LABU" is 0.01%. 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 "LABU", 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.