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

About

Daily-switching strategy that first gauges market stress. In turmoil it toggles between cash/hedges and a 3× Nasdaq bet (TQQQ), often buying dips. In calm times it trades 3× Emerging Markets (EDC long or EDZ short). Defaults to T‑Bills when risk rises.
NutHow it works
Each day it checks market “stress” using a VIX futures fund. If stress is high, it mostly flips between: (1) cash-like T‑Bills (BIL) and hedges (VIXY, BTAL), and (2) a 3× Nasdaq fund (TQQQ) after sharp drops, using hot/cold price gauges, trend, and drawdown checks. If stress is low, it trades 3× Emerging Markets—EDC (bull) or EDZ (bear)—based on bond‑vs‑stock strength and whether EM is trending up. When signals turn negative, it parks in T‑Bills.
CheckmarkValue prop
Out-of-sample, this strategy delivers superior risk-adjusted returns vs the S&P 500: annualized return ~153% vs ~22%; Sharpe ~2.02 vs ~1.31; Calmar ~4.21. Dynamic hedging and regime switching aim for strong upside with risk controls.

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Invest in this strategy
OOS Start Date
Jan 9, 2024
Trading Setting
Daily
Type
Stocks
Category
Tactical allocation, volatility regimes, leveraged etfs, trend and mean reversion, defensive hedges, nasdaq 100, emerging markets
Tickers in this symphonyThis symphony trades 16 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
BND
Vanguard Total Bond Market
Stocks
BTAL
AGF U.S. Market Neutral Anti-Beta Fund
Stocks
EDC
Direxion Daily MSCI Emerging Markets Bull 3X ETF
Stocks
EDZ
Direxion Daily MSCI Emerging Markets Bear 3X ETF
Stocks
EEM
iShares MSCI Emerging Markets ETF
Stocks
IEF
iShares 7-10 Year Treasury Bond ETF
Stocks
IEI
iShares 3-7 Year Treasury Bond ETF
Stocks
IWM
iShares Russell 2000 ETF
Stocks
QQQ
Invesco QQQ Trust, Series 1
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.

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

"Modified Foreign Rat" is currently allocated toEDC. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Modified Foreign Rat" has returned 143.56%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Modified Foreign Rat" is 36.40%. 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 "Modified Foreign Rat", 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.