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Symphonies
Sector Rotator (No Leverage)
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily, single‑position sector rotator: jump to a volatility hedge when markets look overheated, buy a deeply oversold sector, otherwise ride sector uptrends; if nothing qualifies, park in long Treasuries. Uses SPDR sector ETFs, UVXY, and TLT.
NutHow it works
Each day it scans 11 US sector ETFs: tech (XLK), financials (XLF), health (XLV), energy (XLE), materials (XLB), telecom (XTL), real estate (XLRE), consumer disc (XLY), industrials (XLI), utilities (XLU), staples (XLP). If any looks overheated on a 10‑day RSI (>80; a short‑term “hot/cold” gauge), it switches to UVXY (a volatile VIX‑linked hedge). If a sector is very oversold (RSI<30), it buys that one. Else it buys the first sector in an uptrend (50d>200d MA, then 5d>20d). If none, it holds TLT. Reviewed daily; usually one ETF at a time.
CheckmarkValue prop
Out-of-sample edge: stronger risk-adjusted returns and higher upside than SPY. Sharpe ~1.65 vs ~1.07; Calmar ~2.92; annualized return ~71% vs ~20%. A disciplined, rules-based sector rotator with volatility hedges.

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Invest in this strategy
OOS Start Date
Jan 9, 2025
Trading Setting
Daily
Type
Stocks
Category
Sector rotation, momentum, mean reversion, volatility hedge, daily rebalance, us sectors, tactical allocation, treasuries
Tickers in this symphonyThis symphony trades 13 assets in total
Ticker
Type
TLT
iShares 20+ Year Treasury Bond ETF
Stocks
UVXY
ProShares Ultra VIX Short-Term Futures ETF
Stocks
XLB
State Street Materials Select Sector SPDR ETF
Stocks
XLE
State Street Energy Select Sector SPDR ETF
Stocks
XLF
State Street Financial Select Sector SPDR ETF
Stocks
XLI
State Street Industrial Select Sector SPDR ETF
Stocks
XLK
State Street Technology Select Sector SPDR ETF
Stocks
XLP
State Street Consumer Staples Select Sector SPDR ETF
Stocks
XLRE
State Street Real Estate Select Sector SPDR ETF
Stocks
XLU
State Street Utilities Select Sector SPDR 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.

"Sector Rotator (No Leverage)" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Sector Rotator (No Leverage)" is currently allocated toXLK. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Sector Rotator (No Leverage)" has returned 52.18%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Sector Rotator (No Leverage)" is 24.35%. 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 "Sector Rotator (No Leverage)", 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.