Stack: Conservative
STACK
Back to stacking
Total Return
+664.2%
CAGR
+37.9%
Sharpe
1.62
Max Drawdown
-21.7%
Annual Vol
21.5%
Win Rate
63.2%
Starting Capital
$50K
Fees
7bps RT
Strategies
4
Rebalance
Monthly
Strategy
A 4-strategy capital-preservation stack focused on defensive positioning, rebalanced monthly.
Construction
  • Allocation: Monte Carlo Sharpe-maximised
  • Rebalance: Monthly
  • Fees: 7bps round-trip per rebalance
Key Takeaway
Backtest Results
  • Backtest period: 6.2 years with 7bps round-trip fees
  • Stack performance: 1.71 Sharpe, +36.4% CAGR, 21.3% annual vol
  • Stack MaxDD: -15.4% vs worst component MaxDD: -52.5%
  • Diversification benefit: 37 percentage point drawdown reduction
  • Average component Sharpe: 1.20 vs stack Sharpe: 1.71
  • Results are from historical backtesting and may not persist out of sample
Result
$50,000 → $382,115 over 6.3 years
Component Strategies (Individual Performance)
Strategy CAGR Sharpe Max DD Direction Timeframe Allocation
Conservative All-Season+35.0%1.34-25.5%Long/Short3-Day20%
Vol-Scaled Turtle+39.6%1.59-28.0%Long OnlyDaily45%
Btc Dual Momentum V2+32.7%1.19-33.1%Long OnlyDaily10%
Short Low Vol Downtrend+19.4%0.68-52.5%Short Only5-Day25%
Strategy Correlations
Conservative All-SeaVol-Scaled TurtleBtc Dual Momentum V2Short Low Vol Downtr
Conservative All-Sea1.00+0.65+0.56-0.15
Vol-Scaled Turtle+0.651.00+0.64-0.21
Btc Dual Momentum V2+0.56+0.641.00-0.09
Short Low Vol Downtr-0.15-0.21-0.091.00
Key
< -0.2 Negative (ideal)
-0.2 to 0.2 Low (good)
0.2 to 0.5 Moderate
> 0.5 High (redundant)
Portfolio Equity — $50K start

These results are based on historical backtesting and are hypothetical in nature. They do not represent actual trading results. Backtested performance does not account for real-world factors including slippage beyond fee assumptions, exchange downtime, liquidity constraints, market impact, and execution delays. Actual results may differ materially.

Drawdown
Monthly Returns

Loot-Fi publishes historical backtesting research for educational purposes only. Nothing on Loot-Fi constitutes financial advice, a recommendation to buy or sell any asset, or an invitation to invest. Past performance in backtesting does not guarantee future results. All trading involves risk, including the loss of your entire investment. You should consult a licensed financial adviser before making any investment decisions.

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