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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 PSKY?

Smart Money: the liquidity sweep beats buy-and-hold on PSKY by +1.2 points a year over 21 years.

Total return
-15.4%
Buy and hold
-34.8%
CAGR
-0.8%
Sharpe
-0.97
Max drawdown
-20.2%
Trades
74
Out of sample
overfit
Years
21
1×20062008201020122014201620182020202220242026
StrategyPSKY

Findings

  1. Smart Money: the liquidity sweep beats buy-and-hold on PSKY by +1.2 points a year over 21 years.
  2. Against the S&P 500 over the same window: -11.9 points a year.
  3. Total return -15.4% versus -34.8% for buy-and-hold, with 74 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -20.2%.
  6. It did not beat before 2016 and started afterwards.
  7. It ranks #139 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 PSKY 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 PSKY → · Full page for Smart Money: the liquidity sweep →

How to cite

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

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