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Finaxion Research · The golden cross (50/200) · single stocks · Recomputed 2026-09-10

Does the golden cross (50/200) work on MS?

The golden cross (50/200) does not beat buy-and-hold on MS: -6.0 points a year over 34 years.

Total return
898.3%
Buy and hold
×63
CAGR
7.1%
Sharpe
0.24
Max drawdown
-66.0%
Trades
49
Out of sample
overfit
Years
34
1×10×19941997200020032006200920122015201820212024
StrategyMS

Findings

  1. The golden cross (50/200) does not beat buy-and-hold on MS: -6.0 points a year over 34 years.
  2. Against the S&P 500 over the same window: -3.8 points a year.
  3. Total return +898.3% versus ×63 for buy-and-hold, with 49 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -66.0%.
  6. It beats in neither half of the history (split at 2009).
  7. It ranks #135 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 8fb75dc6eee1.

Exactly what was tested

Long while the 50-day SMA is above the 200-day SMA; flat when it is below. Next-close execution. No leverage, no stop.

How to read it

The verdict compares the strategy with buying and holding MS 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 MS → · Full page for The golden cross (50/200) →

How to cite

Finaxion Research (2026). Does the golden cross (50/200) work on MS?. Daily backtest 1962-01-01–2026-08-31, artifact 8fb75dc6eee1. https://finaxion.app/en/research/golden-cross/ms

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