Stack: Maximum Alpha
STACK
Back to stacking
Total Return
+1718.5%
CAGR
+60.1%
Sharpe
1.38
Max Drawdown
-25.3%
Annual Vol
40.0%
Win Rate
59.5%
Starting Capital
$50K
Fees
7bps RT
Strategies
5
Rebalance
Monthly
Strategy
A 5-strategy stack combining trend-following, regime-adaptive, mean-reversion, carry, and structural alpha sources, rebalanced monthly.
Construction
  • Allocation: risk-parity
  • Rebalance: Monthly
  • Fees: 7bps round-trip per rebalance
Key Takeaway
Backtest Results
  • Backtest period: 6.2 years with 7bps round-trip fees
  • Stack performance: 2.17 Sharpe, +57.7% CAGR, 22.5% annual vol
  • Stack MaxDD: -6.5% vs worst component MaxDD: -49.2%
  • Diversification benefit: 43 percentage point drawdown reduction
  • Average component Sharpe: 1.47 vs stack Sharpe: 2.17
  • Results are from historical backtesting and may not persist out of sample
Result
$50,000 → $909,260 over 6.2 years
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Component Strategies (Individual Performance)
Strategy CAGR Sharpe Max DD Direction Timeframe Allocation
Turtle 10-5 Fast+93.6%1.70-46.5%Long OnlyDaily15%
All-Weather Adaptive+49.8%1.72-36.6%Long/Short3-Day25%
Fade Rvol Spike 15X+43.6%1.42-7.7%Short OnlyDaily20%
Carry Momentum Long+89.5%1.43-49.2%Long OnlyWeekly10%
Short New Listings+26.7%1.07-32.3%Short OnlyDaily30%
Strategy Correlations
Turtle 10-5 FastAll-Weather AdaptiveFade Rvol Spike 15XCarry Momentum LongShort New Listings
Turtle 10-5 Fast1.00+0.62+0.07+0.71-0.31
All-Weather Adaptive+0.621.00+0.07+0.49-0.24
Fade Rvol Spike 15X+0.07+0.071.00-0.00-0.14
Carry Momentum Long+0.71+0.49-0.001.00-0.18
Short New Listings-0.31-0.24-0.14-0.181.00
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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