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Symphonies
Rate Momentum
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily, rules-based rotation using RSI to judge stock vs bond strength, then holds two leveraged ETFs: chase winners only when stocks and long bonds are both strong; otherwise buy laggards (bull or bear) for a potential bounce. ~90% invested.
NutHow it works
Daily, it checks short‑term momentum (RSI = 0–100 “recent buying strength”) on: SPY (S&P 500), TMF (3x long 20+yr Treasuries), IWM (small‑caps), IEF (7–10yr Treasuries). If SPY and TMF are strong and stocks beat bonds, it buys the 2 recent winners from 2x/3x bull funds. Otherwise, it buys the 2 recent laggards (bull or bear) aiming for rebounds. ~90% invested, rebalanced daily.
CheckmarkValue prop
Out-of-sample: ~31.5% annualized return vs SPY ~22.6%, ~90% exposure via RSI-driven momentum/mean-reversion across 2 leveraged ETFs. Higher upside but larger drawdowns (~48% OOS) and lower risk-adjusted Sharpe (~0.75).

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Invest in this strategy
OOS Start Date
Jan 3, 2024
Trading Setting
Daily
Type
Stocks
Category
Tactical momentum, mean reversion, leveraged etfs (2x/3x), risk-on/off filter, rsi-based, daily rebalance
Tickers in this symphonyThis symphony trades 20 assets in total
Ticker
Type
DRN
Direxion Daily Real Estate Bull 3X Shares
Stocks
DRV
Direxion Daily Real Estate Bear 3X Shares
Stocks
DUST
Direxion Daily Gold Miners Index Bear 2X Shares
Stocks
EDC
Direxion Daily Emerging Markets Bull 3X Shares, Shares of beneficial interest, no par value
Stocks
EDZ
Direxion Daily Emerging Markets Bear 3x Shares
Stocks
FAS
Direxion Daily Financial Bull 3x Shares
Stocks
FAZ
Direxion Daily Financial Bear 3x Shares
Stocks
HIBL
Direxion Daily S&P 500 High Beta Bull 3X Shares
Stocks
HIBS
Direxion Daily S&P 500 High Beta Bear 3X Shares
Stocks
IEF
iShares 7-10 Year Treasury Bond 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.

"Rate Momentum" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Rate Momentum" is currently allocated toDRVandTZA. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Rate Momentum" has returned 31.52%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Rate Momentum" is 48.25%. 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 "Rate Momentum", 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, crypto, and options.