Compounds with the market, sidesteps the crashes
Backtest results · hypothetical, not live
Recommended. Spans the 2008 crisis
Performance
Detail
Results from a single backtest on QuantConnect. Costs and slippage modeled per the strategy's deployment specification.
About
A fully systematic strategy designed to grow capital steadily over long periods while keeping losses shallow. It runs a fixed, rules-based process with no discretion and low turnover, so it is inexpensive to operate.
Its defining feature is resilience. Over a full market cycle its deepest loss has been well under half the broad stock market's, and in the 2008 financial crisis, when a buy-and-hold stock portfolio fell roughly 39% on the year, this strategy finished the year positive.
It has historically produced equity-like or better long-run returns while showing low sensitivity to the broad market, so a meaningful share of its return is independent of whether stocks rise or fall. Three risk levels are shown, including two that apply modest leverage.
Validated over a two-decade backtest that includes the 2008 financial crisis and other major stress periods, with realistic trading and financing costs applied. Like any strategy it has environments it finds harder than others, and no past result guarantees future performance.