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Symphonies
Long Volatility - Dragon 4.7
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Defense‑first, long‑volatility strategy: buys VIX hedges when markets are overheated, shifts to gold/Treasuries/defensive stocks in stress or downtrends, and only takes brief upside bets (TQQQ) when markets look deeply oversold.
NutHow it works
It runs 3 sleeves that switch based on simple signals: a short‑term “hot/cold” meter (RSI), a quick loss check (10‑day drop), and a long‑term trend line (200‑day average). When tech looks too hot, it buys VIX‑based crash hedges (UVXY/VIXY/VIXM). When it looks washed out, it briefly buys a 3× tech fund (TQQQ). In selloffs/downtrends it rotates to gold (GLD), Treasuries (IEF/SHY), the US dollar (UUP), an anti‑beta fund (BTAL), and defensive stock funds (SCHD, XLP, XLU, XLV). In calm times it holds safer mixes.
CheckmarkValue prop
Defense-first, long-volatility strategy that protects in crises and still captures upside. Out-of-sample: max drawdown 5.4% vs 18.8% SPY; annualized return 24.6% vs 20.4%; Sharpe 2.18 vs 1.14.

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Invest in this strategy
OOS Start Date
Sep 10, 2024
Trading Setting
Threshold 10%
Type
Stocks
Category
Tactical,long volatility,tail-risk hedge,volatility overlay,defensive,trend-following,crisis alpha,risk management
Tickers in this symphonyThis symphony trades 16 assets in total
Ticker
Type
BTAL
AGF U.S. Market Neutral Anti-Beta Fund
Stocks
GLD
SPDR Gold Trust, SPDR Gold Shares
Stocks
IEF
iShares 7-10 Year Treasury Bond ETF
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SCHD
Schwab US Dividend Equity ETF
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
TQQQ
ProShares UltraPro 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.

"Long Volatility - Dragon 4.7" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Long Volatility - Dragon 4.7" is currently allocated toIEF, XLV, UUP, SHY, BTAL, XLU, GLD, SCHDandXLP. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Long Volatility - Dragon 4.7" has returned 23.19%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Long Volatility - Dragon 4.7" is 5.43%. 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 "Long Volatility - Dragon 4.7", 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.