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Symphonies
RSI 2 EEM
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Daily, it trades emerging-market stocks using a 100-day trend filter and a 2-day stretch score from a 3x EM fund. In uptrends it buys dips (EDC) or holds EEM; in blowoffs it shorts (EDZ). In downtrends it holds TLT/IEF/GLD unless a blowoff triggers EDZ.
NutHow it works
Checks daily: 1) Trend: Is EEM (emerging-market stocks) above its 100-day avg? 2) Heat: a 2-day RSI on EDC (3x EM), a 0-100 stretch gauge. Above trend: RSI<2.5 -> buy EDC; RSI>99.25 -> buy EDZ (3x short EM); else hold EEM. Below trend: RSI>99.25 -> EDZ; else hold TLT/IEF (US Treasuries) and GLD (gold) via inverse 30-day vol. EM spans China/Taiwan/India/Korea; sectors: financials, tech, consumer, materials, energy.
CheckmarkValue prop
Out-of-sample edge: ~32% annualized return vs ~17% for the S&P 500, with a Sharpe ~1.90 vs ~0.97, and drawdowns ~11% vs ~19%. Higher risk-adjusted, lower downside, thanks to EM trend + mean-reversion and hedges. Superior risk-controlled growth.

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Invest in this strategy
OOS Start Date
Sep 29, 2024
Trading Setting
Daily
Type
Stocks
Category
Emerging markets, trend + mean reversion, rsi(2), leveraged etfs, risk-on/risk-off, bonds and gold hedge, daily rebalance
Tickers in this symphonyThis symphony trades 6 assets in total
Ticker
Type
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
EEM
iShares MSCI Emerging Markets ETF
Stocks
GLD
SPDR Gold Trust, SPDR Gold Shares
Stocks
IEF
iShares 7-10 Year Treasury Bond ETF
Stocks
TLT
iShares 20+ 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.

"RSI 2 EEM" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"RSI 2 EEM" is currently allocated toEEM. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "RSI 2 EEM" has returned 29.04%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "RSI 2 EEM" is 11.36%. 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 "RSI 2 EEM", 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.