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Symphonies
Simple Regime Switching V2.2
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

In uptrends, buy the single fund that just dipped most (by RSI) among SPY/QQQ and their 2x versions, or SHY. In downtrends, rotate to Treasuries or the U.S. dollar; if weakness deepens, hedge with inverse Nasdaq plus consumer staples.
NutHow it works
1) Regime: Is SPY above its 200‑day average (a long‑term trend line)? - Yes: buy the 1 fund with the lowest 20‑day RSI (a 0–100 “heat meter”; low = recently fell) from: SPY/SSO (S&P 500), QQQ/QLD (Nasdaq), SHY (1–3y Treasuries). - No: if SPY’s 50‑day > 200‑day, own TLT (long Treasuries) when TLT trends up, else UUP (U.S. dollar). Otherwise, if very oversold (10‑day RSI<30) buy QLD; else split QID (2x inverse Nasdaq) and XLP (consumer staples).
CheckmarkValue prop
Out-of-sample edge: 36.72% annualized return vs ~23.12% for the S&P; Calmar ~1.26 and Sharpe ~1.23 show strong risk-adjusted gains. Regime-switching plus bond/USD hedges offer upside with capital defense vs pure SPY exposure.

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Invest in this strategy
OOS Start Date
Sep 26, 2022
Trading Setting
Threshold 10%
Type
Stocks
Category
Regime switching, trend following, mean reversion, tactical allocation, leveraged/inverse etfs, us equities, treasuries, u.s. dollar, defensives
Tickers in this symphonyThis symphony trades 9 assets in total
Ticker
Type
QID
ProShares UltraShort QQQ
Stocks
QLD
ProShares Ultra QQQ
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SHY
iShares 1-3 Year Treasury Bond ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SSO
ProShares Ultra S&P500
Stocks
TLT
iShares 20+ Year Treasury Bond ETF
Stocks
UUP
Invesco DB US Dollar Index Bullish Fund
Stocks
XLP
State Street Consumer Staples 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.

"Simple Regime Switching V2.2" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Simple Regime Switching V2.2" is currently allocated toSSO. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Simple Regime Switching V2.2" has returned 30.53%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Simple Regime Switching V2.2" is 29.08%. 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 "Simple Regime Switching V2.2", 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.