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Symphonies
Layer 2: Hedged Bear Market (v 1.1)
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily, defensive bear-market layer: default to a calmer mix of U.S. dollar and gold; only when weakness isn’t “washed out” does it briefly short stocks with 3x inverse funds, sometimes choosing short-term bonds instead.
NutHow it works
Each day it asks: Are stocks healthy? If yes, sit in a calm mix of the U.S. dollar (UUP) and gold (GLD), sized so the steadier one gets more weight. If stocks are weak but not “washed out,” take brief, tactical shorts via 3x inverse funds (SQQQ or SPXS); if shorts look stretched, park in short-term bonds (BSV/SHY) instead.
CheckmarkValue prop
An insurance overlay that hedges stock risk with a negative SPY beta (-0.38) and USD/gold hedges, delivering diversification and potential downside control in bear markets, while offering a modest out-of-sample return that complements the S&P 500.
1M
3M
6M
YTD
1Y
3Y
Max
www.composer.trade
Performance
Compared to selected benchmarks
AlphaBetaR2R
SPY
0.25-0.480.12-0.34
Performance Metrics
Cumulative ReturnAnnualized ReturnTrailing 1M ReturnTrailing 3M ReturnSharpe Ratio
SPY
691.59%13.74%-4.19%-3.74%0.84
Layer 2: Hedged Bear Market (v 1.1)
965.98%15.86%4.33%8.59%0.72
Initial Investment
$10,000.00
Final Value
$106,597.74
Regulatory Fees
$337.39
Total Slippage
$1,867.26
Invest in this strategy
OOS Start Date
Sep 22, 2022
Trading Setting
Daily
Type
Stocks
Category
Bear market, tactical, inverse etfs, volatility hedge, gold, us dollar, trend-following, mean reversion, daily rebalance, risk management
Tickers in this symphonyThis symphony trades 9 assets in total
Ticker
Type
BSV
Vanguard Short-Term Bond ETF
Stocks
GLD
SPDR Gold Trust, SPDR Gold Shares
Stocks
PSQ
ProShares Short QQQ
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SHY
iShares 1-3 Year Treasury Bond ETF
Stocks
SPXS
Direxion Daily S&P 500 Bear 3x ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SQQQ
ProShares UltraPro Short QQQ
Stocks
UUP
Invesco DB US Dollar Index Bullish Fund
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.

"Layer 2: Hedged Bear Market (v 1.1)" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Layer 2: Hedged Bear Market (v 1.1)" is currently allocated toBSV. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Layer 2: Hedged Bear Market (v 1.1)" has returned 7.69%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Layer 2: Hedged Bear Market (v 1.1)" is 35.06%. 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 "Layer 2: Hedged Bear Market (v 1.1)", 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.