Skip to Content
Symphonies
Top 3 Sectors Strategy
Today’s Change
—

A symphony is an automated trading strategy — Learn more about symphonies here

About

A quarterly sector-rotation approach: it buys the three U.S. stock sectors with the strongest recent 4‑month performance (via SPDR sector ETFs), splits money equally among them, and rebalances every quarter.
NutHow it works
Every 3 months, it checks major U.S. stock sectors via SPDR funds and scores each by its average return over roughly the last 4 months. It buys the top 3 and splits money evenly (about 1/3 each) until the next review. Sectors include: Tech (XLK: Apple/Microsoft/Nvidia), Financials (XLF: JPM/Berkshire), Energy (XLE: Exxon/Chevron), Health Care (XLV), Consumer Staples (XLP: Coca‑Cola/PG), Consumer Discretionary (XLY: Amazon/Tesla), Industrials (XLI), Materials (XLB), Utilities (XLU), Communications (XLC: Google/Meta).
CheckmarkValue prop
Momentum-driven quarterly sector rotation targets the leaders across 3 top sectors. Out-of-sample drawdowns are milder (16.8% vs 18.8%), with solid risk-adjusted return (Calmar ~1.11; oos Sharpe ~1.26). A smoother path with controlled risk vs the S&P 500.
1M
3M
6M
YTD
1Y
3Y
Max
www.composer.trade
Performance
Compared to selected benchmarks
AlphaBetaR2R
SPY
0.040.90.780.89
Performance Metrics
Cumulative ReturnAnnualized ReturnTrailing 1M ReturnTrailing 3M ReturnSharpe Ratio
SPY
182.58%15.78%1.36%5.73%0.83
Top 3 Sectors Strategy
236.63%18.67%1.38%4.61%0.95
Initial Investment
$10,000.00
Final Value
$33,663.44
Regulatory Fees
$8.45
Total Slippage
$54.37
Invest in this strategy
OOS Start Date
Nov 17, 2023
Trading Setting
Quarterly
Type
Stocks
Category
Us equities, sector rotation, momentum/trend-following, spdr sector etfs, quarterly rebalance, equal-weight
Tickers in this symphonyThis symphony trades 0 assets in total
Ticker
Type

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.

"Top 3 Sectors Strategy" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Top 3 Sectors Strategy" is currently allocated toXLCandXLK. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Top 3 Sectors Strategy" has returned 18.56%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Top 3 Sectors Strategy" is 16.76%. 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 "Top 3 Sectors Strategy", 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, crypto, and options.