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Symphonies
S10 Hedged Sector Rotator
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily 60/40 tactical mix: 60% rotates into the strongest S&P sector (or buys “fear” if markets overheat). 40% auto‑hedges with Treasuries, volatility ETFs, or short positions using short‑term heat/trend signals. High turnover and volatility expected.
NutHow it works
60% hunts daily for the best (or most beaten‑down) of the 11 S&P sectors. If a sector looks “too hot” (a short‑term heat gauge, RSI 0–100, is very high), it briefly buys market fear (a VIX fund) instead. 40% runs hedges: it flips among long/short Treasuries, long/short stock funds, or VIX funds using simple heat/trend checks on QQQ/SPY/bonds. Rebalanced daily.
CheckmarkValue prop
Out-of-sample edge: higher risk-adjusted returns and stronger upside with controlled drawdown. Sharpe 2.16 vs 1.18; Calmar 4.36; annualized return ~83% vs ~21%. A 60/40 strategy rotating sectors and hedging with Treasuries/volatility.

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Invest in this strategy
OOS Start Date
Aug 3, 2024
Trading Setting
Daily
Type
Stocks
Category
Tactical allocation, sector rotation, trend following, hedged, leveraged/inverse etfs, volatility trading, daily rebalance
Tickers in this symphonyThis symphony trades 40 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
BND
Vanguard Total Bond Market
Stocks
BSV
Vanguard Short-Term Bond ETF
Stocks
BTAL
AGF U.S. Market Neutral Anti-Beta Fund
Stocks
CURE
Direxion Daily Healthcare Bull 3X ETF
Stocks
DRN
Direxion Daily Real Estate Bull 3X ETF
Stocks
DUSL
Direxion Daily Industrials Bull 3X ETF
Stocks
ERX
Direxion Daily Energy Bull 2X ETF
Stocks
FAS
Direxion Daily Financial Bull 3x ETF
Stocks
LTL
ProShares Ultra Communication Services
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.

"S10 Hedged Sector Rotator " is currently performing the same as yesterday today. Performance updates in real time during market hours.

"S10 Hedged Sector Rotator " is currently allocated toERX, TECL, BTAL, SHV, SH, BNDandPSQ. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "S10 Hedged Sector Rotator " has returned 76.39%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "S10 Hedged Sector Rotator " is 19.03%. 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 "S10 Hedged Sector Rotator ", 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.