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Finaxion Research · Smart Money: the liquidity sweep · single stocks · Recomputed 2026-09-10

Does Smart Money: the liquidity sweep work on CRL?

Smart Money: the liquidity sweep does not beat buy-and-hold on CRL: -9.4 points a year over 26 years.

Total return
27.0%
Buy and hold
×13
CAGR
0.9%
Sharpe
-0.84
Max drawdown
-8.2%
Trades
68
Out of sample
overfit
Years
26
1×10.3×2001200320052007200920112013201520172019202120232025
StrategyCRL

Findings

  1. Smart Money: the liquidity sweep does not beat buy-and-hold on CRL: -9.4 points a year over 26 years.
  2. Against the S&P 500 over the same window: -7.6 points a year.
  3. Total return +27.0% versus ×13 for buy-and-hold, with 68 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -8.2%.
  6. It beats in neither half of the history (split at 2013).
  7. It ranks #3 of 227 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 2544360d2bb7.

Exactly what was tested

Mechanical approximation: 25-bar low pierced with a close back above it on the same bar → entry; exit after 20 bars.

How to read it

The verdict compares the strategy with buying and holding CRL 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 CRL → · Full page for Smart Money: the liquidity sweep →

How to cite

Finaxion Research (2026). Does Smart Money: the liquidity sweep work on CRL?. Daily backtest 1962-01-01–2026-08-31, artifact 2544360d2bb7. https://finaxion.app/en/research/liquidity-sweep/crl

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