Skip to Content
Symphonies
Rate Momentum
Today’s Change
—

A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily, tactical strategy that switches between momentum and contrarian using stock/bond strength (SPY, IWM vs IEF, TMF). It picks 2 leveraged bull or bear ETFs (ranked by recent returns), invests about 90% equally, and keeps roughly 10% in cash.
NutHow it works
It checks conditions daily. RSI is a 0–100 score of recent buying vs. selling. If U.S. stocks (SPY) are very hot and long bonds (TMF) are strong, it rides trends: if small caps (IWM) beat Treasuries (IEF), buy the 2 strongest bullish 3x ETFs; otherwise buy the 2 strongest bearish 3x ETFs (ranked by ~4‑day return). In all other times, it goes contrarian: buy the 2 most beaten‑down funds on the opposite side. Invest ~90% equally; ~10% stays in cash.
CheckmarkValue prop
Out-of-sample annualized return ~27.9% vs S&P 22.6%, via a dynamic regime strategy combining momentum and contrarian bets on leveraged ETFs. Potential for higher upside and diversification beyond the S&P, but with larger drawdowns - best for risk-tolerant investors.

Loading backtest data...

Invest in this strategy
OOS Start Date
Jan 3, 2024
Trading Setting
Daily
Type
Stocks
Category
Tactical, leveraged etfs, momentum + mean reversion, rates-vs-equities filter, daily rebalance
Tickers in this symphonyThis symphony trades 20 assets in total
Ticker
Type
DRN
Direxion Daily Real Estate Bull 3X ETF
Stocks
DRV
Direxion Daily Real Estate Bear 3X ETF
Stocks
DUST
Direxion Daily Gold Miners Index Bear 2X ETF
Stocks
EDC
Direxion Daily MSCI Emerging Markets Bull 3X ETF
Stocks
EDZ
Direxion Daily MSCI Emerging Markets Bear 3X ETF
Stocks
FAS
Direxion Daily Financial Bull 3x ETF
Stocks
FAZ
Direxion Daily Financial Bear 3x ETF
Stocks
HIBL
Direxion Daily S&P 500 High Beta Bull 3X ETF
Stocks
HIBS
Direxion Daily S&P 500 High Beta Bear 3X ETF
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 toLABUandNUGT. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Rate Momentum" has returned 45.83%. 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, and options.