FINAXIONResearch
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 LITE?

Only invest above the 200-day average does not beat buy-and-hold on LITE: -22.7 points a year over 11 years.

Total return
687.8%
Buy and hold
×54
CAGR
20.5%
Sharpe
0.55
Max drawdown
-79.4%
Trades
107
Out of sample
—
Years
11
1×10×20162017201820192020202120222023202420252026
StrategyLITE

Findings

  1. Only invest above the 200-day average does not beat buy-and-hold on LITE: -22.7 points a year over 11 years.
  2. Against the S&P 500 over the same window: +6.2 points a year.
  3. Total return +687.8% versus ×54 for buy-and-hold, with 107 trades.
  4. Maximum drawdown -79.4%.
  5. It beats in neither half of the history (split at 2021).
  6. It ranks #18 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 LITE 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 LITE → · 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 LITE?. Daily backtest 1962-01-01–2026-08-31, artifact 7a691ad4255c. https://finaxion.app/en/research/200-day-sma-filter/lite

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