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Finaxion Research · Only invest above the 200-day average · single stocks · Recomputed 2026-09-10

Does Only invest above the 200-day average work on HIG?

Only invest above the 200-day average does not beat buy-and-hold on HIG: -0.6 points a year over 31 years.

Total return
773.0%
Buy and hold
951.1%
CAGR
7.3%
Sharpe
0.25
Max drawdown
-48.3%
Trades
247
Out of sample
—
Years
31
1×10×19961999200220052008201120142017202020232026
StrategyHIG

Findings

  1. Only invest above the 200-day average does not beat buy-and-hold on HIG: -0.6 points a year over 31 years.
  2. Against the S&P 500 over the same window: -3.1 points a year.
  3. Total return +773.0% versus +951.1% for buy-and-hold, with 247 trades.
  4. Maximum drawdown -48.3%.
  5. It beat before 2011 and stopped afterwards.
  6. It ranks #113 of 235 markets for this strategy by annual excess over the S&P 500.

Findings derived from the full panel. Each carries its number and its denominator; the computations are reproducible with artifact 7a691ad4255c.

Exactly what was tested

Long while the close is above the 200-day SMA; exit when the close crosses below it. Next-close execution.

How to read it

The verdict compares the strategy with buying and holding HIG over the same window, with round-trip costs per asset class. “Out of sample” is walk-forward: the rule is fit on one stretch and judged on the next. A result that beats in the full sample but not out of it is overfit. Full methodology in the protocol. How we test.

Open this backtest with its trades   Trades (CSV)

Every strategy on HIG → · Full page for Only invest above the 200-day average →

How to cite

Finaxion Research (2026). Does Only invest above the 200-day average work on HIG?. Daily backtest 1962-01-01–2026-08-31, artifact 7a691ad4255c. https://finaxion.app/en/research/200-day-sma-filter/hig

Not a recommendation. Past performance does not guarantee future results.