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Symphonies
Utilities XLU
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A utilities‑only, contrarian strategy: usually hold XLU; if the sector gets unusually weak, switch to 3x bull UTSL for a potential bounce; if it gets too hot, flip to −2x inverse SDP for a potential pullback. Checked and rebalanced daily.
NutHow it works
Each day it checks a 10‑day “heat meter” (RSI) on XLU, a fund holding U.S. utility stocks (power, gas, water). Scale 0–100. - If below 25 (unusually weak): put 100% in UTSL, a fund targeting 3x daily utilities gains. - If above 85 (too hot): put 100% in SDP, a fund targeting −2x daily utilities. - Otherwise: hold XLU. Rebalanced daily.
CheckmarkValue prop
Out-of-sample, this utilities contrarian strategy outperforms the S&P: annualized return 21.69% vs 18.01%, max drawdown 9.72% vs 18.76%, Sharpe 1.30 vs 1.03, Calmar 2.23. More upside with less downside and stronger risk control.

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Invest in this strategy
OOS Start Date
Jun 25, 2024
Trading Setting
Daily
Type
Stocks
Category
Utilities sector, rsi mean reversion, leveraged/inverse etfs, daily rebalanced, long/short switching
Tickers in this symphonyThis symphony trades 3 assets in total
Ticker
Type
SDP
ProShares UltraShort Utilities
Stocks
UTSL
Direxion Daily Utilities Bull 3X Shares
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.

"Utilities XLU" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Utilities XLU" is currently allocated toXLU. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Utilities XLU" has returned 26.50%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Utilities XLU" is 9.72%. 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 "Utilities XLU", 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.