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Symphonies
Safe Dips/Rips l 10 Jan 2011
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A contrarian swing strategy: fade short‑term “rips” with VIX or cash, and buy deep “dips” with leveraged tech/S&P or short‑vol. When no extremes, sit in T‑bills/bonds. Focused on US large‑cap tech/growth; high risk.
NutHow it works
It watches big, tech‑heavy indexes (like QQQ, XLK, VOOG) and the S&P 500 (SPY) using a 10‑day RSI, a 0–100 “too hot/too cold” gauge. • If they’re a bit too hot, it hedges with a VIX fund (VIXM). If they’re extremely hot, it sits in cash. • If they’re very cold, it buys the dip using leveraged tech/S&P funds (TECL/SPXL) or short‑vol (SVXY). • Otherwise it parks in T‑bills/bonds (BIL/BSV). High risk, short‑term moves.
CheckmarkValue prop
Out-of-sample, this contrarian, volatility-driven strategy targets tech exposure, delivering ~34% return vs SPY’s ~22.6%, with Calmar ~1.43 and Sharpe ~1.11. Higher drawdowns exist; VIX/cash hedging aims for stronger long-run risk-adjusted performance.

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Invest in this strategy
OOS Start Date
May 30, 2023
Trading Setting
Threshold 10%
Type
Stocks
Category
Tactical, contrarian, rsi-based, volatility hedging, leveraged etfs, us large cap, tech tilt, market timing
Tickers in this symphonyThis symphony trades 12 assets in total
Ticker
Type
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
BSV
Vanguard Short-Term Bond ETF
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SPXL
Direxion Daily S&P 500 Bull 3x ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SVXY
ProShares Short VIX Short-Term Futures ETF
Stocks
TECL
Direxion Daily Technology Bull 3x ETF
Stocks
UVXY
ProShares Ultra VIX Short-Term Futures ETF
Stocks
VIXM
ProShares VIX Mid-Term Futures ETF
Stocks
VIXY
ProShares VIX Short-Term Futures 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.

"Safe Dips/Rips l 10 Jan 2011" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Safe Dips/Rips l 10 Jan 2011" is currently allocated toBIL. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Safe Dips/Rips l 10 Jan 2011" has returned 37.44%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Safe Dips/Rips l 10 Jan 2011" is 23.50%. 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 "Safe Dips/Rips l 10 Jan 2011", 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.