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Symphonies
V2 | Emerging Markets | Otterly Foolish | Dereck Nielsen Mod
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Tactical emerging‑markets strategy using trend (moving averages) and “hot/washed‑out” signals (RSI) to rotate among EM stocks (broad, strongest countries, ex‑China), a small leveraged sleeve, inverse EM, and bonds. Uses 3x funds; high risk; rebalanced daily.
NutHow it works
Daily it checks trend in emerging markets (EEM): 8‑day avg above 200‑day = uptrend. In uptrends: if EM are “too hot” (EDC’s RSI>80) it switches to the bear fund (EDZ); else it holds the 4 strongest EM country ETFs plus slices of leveraged EM (EDC) and EM ex‑China (EMXC). In downtrends: if “washed out” (EDC’s RSI<26) it buys EDC; else it holds BSV, VWOB, or EDZ based on EDC vs its 90‑day avg. RSI (0–100) = speed of recent moves; moving averages smooth price.
CheckmarkValue prop
EM Tactical Rotator: Out-of-sample 31.44% annualized return vs S&P 23.35%, Calmar ~1.07, with upside from diversified EM exposure and trend/momentum risk controls. Higher max drawdowns (~29.5% vs 18.8%), but potential for greater long‑term gains.

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Invest in this strategy
OOS Start Date
Nov 30, 2023
Trading Setting
Daily
Type
Stocks
Category
Emerging markets, tactical allocation, trend-following, momentum, mean reversion, leveraged/inverse etfs, bonds, daily rebalance
Tickers in this symphonyThis symphony trades 25 assets in total
Ticker
Type
BSV
Vanguard Short-Term Bond ETF
Stocks
ECH
iShares MSCI Chile ETF
Stocks
EDC
Direxion Daily MSCI Emerging Markets Bull 3X ETF
Stocks
EDZ
Direxion Daily MSCI Emerging Markets Bear 3X ETF
Stocks
EEM
iShares MSCI Emerging Markets ETF
Stocks
EIDO
iShares MSCI Indonesia ETF
Stocks
EMXC
iShares MSCI Emerging Markets ex China ETF
Stocks
EPHE
iShares MSCI Philippines ETF
Stocks
EPOL
iShares MSCI Poland ETF
Stocks
EPU
iShares MSCI Peru and Global Exposure 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.

The symphony is currently performing the same as yesterday today. Performance updates in real time during market hours.

The symphony is currently allocated toEMXC, EWZ, EWM, EWY, EDCandEWT. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, the symphony has returned 24.25%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for the symphony is 29.51%. 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 the symphony, 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.