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

Does Smart Money: the liquidity sweep work on KEYS?

Smart Money: the liquidity sweep does not beat buy-and-hold on KEYS: -22.6 points a year over 12 years.

Total return
2.4%
Buy and hold
×11
CAGR
0.2%
Sharpe
-1.24
Max drawdown
-13.3%
Trades
52
Out of sample
—
Years
12
0.8×1×6.8×12.7×201520162017201820192020202120222023202420252026
StrategyKEYS

Findings

  1. Smart Money: the liquidity sweep does not beat buy-and-hold on KEYS: -22.6 points a year over 12 years.
  2. Against the S&P 500 over the same window: -14.1 points a year.
  3. Total return +2.4% versus ×11 for buy-and-hold, with 52 trades.
  4. Maximum drawdown -13.3%.
  5. It beats in neither half of the history (split at 2020).
  6. It ranks #182 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 KEYS 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 KEYS → · Full page for Smart Money: the liquidity sweep →

How to cite

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

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