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TQQQ FTLTO (Longer Backtest)
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A fast-moving, high-risk strategy that times the market using trend and momentum signals, mostly trading leveraged tech/Nasdaq funds, but sometimes switching to volatility, inverse Nasdaq, bonds, or defensive sectors.
NutHow it works
This strategy is an aggressive market-timing system centered on big U.S. stock indexes, especially the tech-heavy Nasdaq. First, it asks: is the U.S. stock market in a healthy long-term uptrend? It checks this by comparing the S&P 500 (SPY) to its 200-day average price. If SPY is above that line, it treats the market as bullish. If below, it treats it as bearish. In bullish periods, it usually buys whichever high-powered stock funds have been strongest lately—mainly funds tied to the Nasdaq, semiconductors, technology, the S&P 500, and the Dow. These include TQQQ, SOXL, TECL, UPRO, and UDOW, which are all “leveraged” funds that try to move about 3 times as much as their underlying index in a single day. It also often keeps part of the portfolio in SVXY, a fund that tends to benefit when market fear falls. But if the market looks too overheated, it quickly turns defensive. To judge “overheated,” it uses RSI, which is just a speedometer for recent price moves. A very high RSI means prices have risen so fast that they may be due for a pullback. When that happens, the strategy can switch fully into UVXY, a fund that tends to jump when fear and volatility spike. In some calmer bullish conditions, instead of owning the usual tech-heavy leveraged funds, it picks the single strongest performer from a mixed list that includes long-term Treasury bonds (TMF), the U.S. dollar (UUP), volatility (VIXY), consumer staples (XLP), the total U.S. market (VTI), small-company stocks (IWM), and a fund that rises when oil falls (SCO). In plain English: it sometimes looks outside tech and simply backs whatever has been acting strongest in the short run. In bearish periods, the strategy becomes more complicated. Oddly, when stocks have fallen very hard in the short term, it often buys aggressive long funds like TECL, SOXL, or UPRO, betting on a sharp rebound. If those “oversold bounce” signals are not present, it shifts into protection mode and looks at shorter-term trend clues in the Nasdaq (QQQ). There it may choose between: • TQQQ: a very aggressive bet that the Nasdaq will rise • SQQQ or PSQ: funds that rise when the Nasdaq falls • QQQ or SMH: plain, unleveraged exposure to the Nasdaq or chip stocks • SPY, DIA, or XLP: broader or more defensive stock exposure It also uses Treasury bonds (TLT/TMF) as a “fear vs safety” reference point. If bonds are acting better than bearish Nasdaq funds, the strategy sometimes takes that as a sign the selling panic may be fading and becomes less defensive. So the big picture is: this system constantly asks whether the market is in an uptrend, whether prices have moved too far too fast, and which area is strongest right now. Then it rotates among very aggressive tech funds, fear/volatility funds, inverse Nasdaq funds, and occasionally safer or broader market funds.
CheckmarkValue prop
Out-of-sample annualized return ~50% vs SPY ~21%; Sharpe ~1.01; Calmar ~0.95. Expect materially higher upside in tech-driven markets, with max drawdown ~53% vs SPY ~19% - a clear trade-off: bigger gains, higher volatility than the S&P 500.

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Invest in this strategy
OOS Start Date
Sep 20, 2023
Trading Setting
Threshold 1%
Type
Stocks
Category
Tactical asset allocation, leveraged etfs, trend following, mean reversion, volatility trading, tech-heavy, long/short
Tickers in this symphonyThis symphony trades 21 assets in total
Ticker
Type
DIA
State Street SPDR Dow Jones Industrial Average ETF Trust
Stocks
IWM
iShares Russell 2000 ETF
Stocks
PSQ
ProShares Short QQQ
Stocks
QQQ
Invesco QQQ Trust, Series 1
Stocks
SCO
ProShares UltraShort Bloomberg Crude Oil
Stocks
SMH
VanEck Semiconductor ETF
Stocks
SOXL
Direxion Daily Semiconductor Bull 3X ETF
Stocks
SPY
State Street SPDR S&P 500 ETF Trust
Stocks
SQQQ
ProShares UltraPro Short QQQ
Stocks
SVXY
ProShares Short 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.

"TQQQ FTLTO (Longer Backtest)" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"TQQQ FTLTO (Longer Backtest)" is currently allocated toUPRO, SVXY, TQQQandUDOW. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "TQQQ FTLTO (Longer Backtest)" has returned 51.20%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "TQQQ FTLTO (Longer Backtest)" is 53.29%. 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 "TQQQ FTLTO (Longer Backtest)", 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.

Securities products and brokerage services are offered by Composer Securities LLC, a broker-dealer registered with the SEC and member of FINRA / SIPC. Composer Securities LLC and Composer Technologies Inc. are separate but affiliated companies. Accounts are carried and securities execution, clearance and settlement services are provided by Alpaca Securities LLC, and Apex Clearing Corporation, SEC-registered broker-dealers and members of FINRA / SIPC. Alpaca Securities is a wholly-owned subsidiary of AlpacaDB, Inc. Apex Clearing Corporation, is a wholly-owned subsidiary of Apex Fintech Solutions Inc. Check the background of Composer Securities LLC, Alpaca Securities LLC, and Apex Clearing Corporation on FINRA BrokerCheck . This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Composer Securities is not registered. Securities products offered by Composer Securities are not FDIC insured

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