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Symphonies
WAM | HedgeTown
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

A daily‑rebalanced, hedged strategy. It compares short‑term strength of bonds vs the Nasdaq to decide which side (bull or bear) gets leveraged. It then buys recent laggards on each side and keeps a small safety sleeve in cash‑like and lower‑risk ETFs.
NutHow it works
Most money goes into a hedged engine that holds both bullish and bearish ETFs at the same time. A quick test of whether bonds or the Nasdaq looks stronger decides which side gets the bigger, leveraged bet. Within each side, it picks a few recent laggards (last ~4 days). A small slice sits in a safety mix of T‑bills, Treasuries, low‑vol stocks, the Dow, and high‑yield bonds.
CheckmarkValue prop
Out-of-sample, this hedged strategy aims ~25% annual return with a superior risk-adjusted Sharpe (~1.24) and positive alpha, plus a low beta (~0.44). Drawdowns may be higher (~22%) than the S&P.

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Invest in this strategy
OOS Start Date
May 7, 2024
Trading Setting
Daily
Type
Stocks
Category
Tactical, hedged long/short, leveraged & inverse etfs, momentum/mean-reversion, multi-asset, daily rebalance
Tickers in this symphonyThis symphony trades 29 assets in total
Ticker
Type
AGG
iShares Core U.S. Aggregate Bond ETF
Stocks
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
Stocks
DIA
State Street SPDR Dow Jones Industrial Average ETF Trust
Stocks
DOG
ProShares Short Dow30
Stocks
DRN
Direxion Daily Real Estate Bull 3X Shares
Stocks
DRV
Direxion Daily Real Estate Bear 3X Shares
Stocks
EDC
Direxion Daily Emerging Markets Bull 3X Shares, Shares of beneficial interest, no par value
Stocks
EEM
iShares MSCI Emerging Markets ETF
Stocks
HYG
iShares iBoxx $ High Yield Corporate Bond ETF
Stocks
IWM
iShares Russell 2000 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.

"WAM | HedgeTown" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"WAM | HedgeTown" is currently allocated toHYG, SHV, DIA, TLT, BILandSPLV. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "WAM | HedgeTown" has returned 19.01%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "WAM | HedgeTown" is 22.00%. 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 "WAM | HedgeTown", 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.