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Symphonies
SPY - Dynamic Hedging
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A tactical S&P 500 strategy that is usually long SPY but briefly flips to SH (the inverse S&P ETF) after sharp pops, and buys SPY after sharp drops. It blends a 200‑day trend filter with short‑term mean‑reversion signals.
NutHow it works
It times the S&P 500 using two ideas: long‑term trend and short‑term swings. It holds either SPY (tracks the S&P 500) or SH (moves opposite the S&P). - If SPY is above its 200‑day average: hold SPY, unless the last ~10 days rose >~5%, then switch to SH to hedge a likely pullback. - If below 200‑day: if last ~10 days fell <~−4%, buy SPY for a rebound; otherwise, if price > 5‑day average, use SH; else hold SPY.
CheckmarkValue prop
Out-of-sample resilience with a smart hedge: lower drawdowns (13.1% vs SPY’s 18.8%), better risk-adjusted return (Calmar ~1.18) and steady upside (~15.4% annualized) under a disciplined trend/mean-reversion rule—more durable gains than the S&P 500.
1M
3M
6M
YTD
1Y
3Y
Max
www.composer.trade
Performance
Compared to selected benchmarks
AlphaBetaR2R
SPY
0.090.660.440.66
Performance Metrics
Cumulative ReturnAnnualized ReturnTrailing 1M ReturnTrailing 3M ReturnSharpe Ratio
SPY
682.93%11.03%0.54%-0.34%0.63
SPY - Dynamic Hedging
2,019.03%16.79%0.54%0.23%0.89
Initial Investment
$10,000.00
Final Value
$211,903.04
Regulatory Fees
$619.63
Total Slippage
$4,183.19
Invest in this strategy
OOS Start Date
Nov 3, 2024
Trading Setting
Threshold 10%
Type
Stocks
Category
S&p 500 timing, trend filter, mean reversion, tactical hedging, long/short equity
Tickers in this symphonyThis symphony trades 2 assets in total
Ticker
Type
SH
ProShares Short S&P500
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
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.

"SPY - Dynamic Hedging" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"SPY - Dynamic Hedging" is currently allocated toSPY. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "SPY - Dynamic Hedging" has returned 12.39%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "SPY - Dynamic Hedging" is 13.14%. 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 "SPY - Dynamic Hedging", 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.