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Symphonies
Risk Weight Experiment
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily, rules‑based portfolio that rides uptrends in tech and broad stocks (often with leveraged ETFs), adds crash hedges when rallies look overheated, and shifts to cash‑like T‑bills, the US dollar, bonds, gold, or commodities when trends weaken.
NutHow it works
Each day it checks the market trend (a moving average = a simple trend line) and a “temperature gauge” called RSI (high = overheated, low = washed‑out). If stocks trend up, it loads growth/tech (often with 3x funds like TQQQ/UPRO/TECL/SOXL). If trends weaken or get too hot, it adds hedges (UVXY) or rotates to safer assets: cash‑like T‑bills (SHY/SHV/BIL), the US dollar (UUP), bonds (TLT/TMF/TMV), gold (GLD), or commodities (DBC). It also buys dips when tech is very oversold. Rebalances daily.
CheckmarkValue prop
Out-of-sample, this rules-based strategy outperforms on risk-adjusted basis: Sharpe ~2.23 vs ~1.06; max drawdown ~4% vs ~19%; Calmar ~2.89. It combines tech upside with hedges and capital protection.

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Invest in this strategy
OOS Start Date
Aug 16, 2024
Trading Setting
Daily
Type
Stocks
Category
Tactical asset allocation, trend-following, momentum, multi-asset, regime switching, hedged, leveraged etfs, risk-managed
Tickers in this symphonyThis symphony trades 96 assets in total
Ticker
Type
AAPL
Apple Inc.
Stocks
ADBE
Adobe Inc.
Stocks
AGG
iShares Core U.S. Aggregate Bond ETF
Stocks
AMD
Advanced Micro Devices
Stocks
AMGN
Amgen Inc
Stocks
AMZN
Amazon.Com Inc
Stocks
AVGO
Broadcom Inc. Common Stock
Stocks
AXP
American Express Company
Stocks
BA
Boeing Company
Stocks
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill 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.

"Risk Weight Experiment" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Risk Weight Experiment" is currently allocated toUPRO, VGLT, IEF, XLV, NFLX, SOXL, TMF, XOM, UUP, DBC, NVDA, JNJ, SHY, AMGN, HON, TECL, BTAL, TQQQ, QLD, UNH, FAS, SSO, XLU, GLD, VGIT, TRV, SCHD, BIL, COSTandXLP. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Risk Weight Experiment" has returned 10.38%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Risk Weight Experiment" is 4.01%. 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 "Risk Weight Experiment", 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.