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

About

Own stocks in uptrends, hedge fast with gold/US dollar or volatility when markets wobble; in downtrends, stay mostly hedged. Sometimes uses leveraged funds for short, oversold bounces. Rebalanced daily.
NutHow it works
Daily, rules-based. Step 1: If SPY is above its 200‑day trend, it’s an uptrend; hold US stocks (SPY/QQQ) and, when briefly oversold, sometimes their 3x versions (TQQQ/SPXL). Step 2: If a quick drop or overheating hits, switch to a hedge: gold (GLD) and the US dollar (UUP), sized by recent calmness, or short‑term volatility (UVXY). Step 3: If SPY is below trend, mostly stay in hedges or SHY (T‑bills), with only small tactical bounces. Rebalance daily.
CheckmarkValue prop
Out-of-sample edge: 31.3% annualized return vs 22.1% for the S&P, Sharpe 1.73 vs 1.31, Calmar 1.78, lower beta (~0.39), and tighter drawdown (~17.6% vs 18.8%). A dynamic, hedged-bull strategy with higher upside and disciplined risk.

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Invest in this strategy
OOS Start Date
Sep 22, 2022
Trading Setting
Daily
Type
Stocks
Category
Tactical allocation, trend-following, mean reversion, volatility hedging, leveraged etfs, risk management, multi-asset, daily rebalanced
Tickers in this symphonyThis symphony trades 10 assets in total
Ticker
Type
GLD
SPDR Gold Trust, SPDR Gold Shares
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SHY
iShares 1-3 Year Treasury Bond ETF
Stocks
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
TMF
Direxion Daily 20+ Year Treasury Bull 3X ETF
Stocks
TQQQ
ProShares UltraPro QQQ
Stocks
UUP
Invesco DB US Dollar Index Bullish Fund
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.

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

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

Year-to-date, "Layer 2: Hedged Bull (v 1.1)" has returned 30.05%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Layer 2: Hedged Bull (v 1.1)" is 17.56%. 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 Bull (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.