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Symphonies
Market-regime: LQD vs SPY
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily switch between SPY (stocks) and BIL (T‑bills) based on whether corporate bonds (LQD) show stronger short‑term strength than stocks. Credit strength → own SPY; otherwise sit in T‑bills.
NutHow it works
Each day it compares a short-term “strength” reading (RSI) of two funds: LQD (investment‑grade corporate bonds) and SPY (U.S. stocks). If LQD’s reading is stronger than SPY’s, it buys SPY. Otherwise it parks in BIL (1–3 month T‑bills). One holding at a time; rebalanced daily.
CheckmarkValue prop
Out-of-sample, this strategy beats SPY on risk-adjusted return and drawdown: Sharpe 1.29 vs 0.99; return 20.7% vs 18.6%; max drawdown 14.3% vs 18.8%; Calmar ~1.44. Simple risk-on/off rule that protects capital while seeking gains.

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Invest in this strategy
OOS Start Date
Jan 7, 2025
Trading Setting
Daily
Type
Stocks
Category
Tactical asset allocation, risk-on/risk-off, momentum, rsi, equities vs cash, credit-based regime filter
Tickers in this symphonyThis symphony trades 3 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
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.

"Market-regime: LQD vs SPY" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Market-regime: LQD vs SPY" is currently allocated toSPY. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Market-regime: LQD vs SPY" has returned 18.11%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Market-regime: LQD vs SPY" is 14.33%. 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 "Market-regime: LQD vs SPY", 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.