12 MONTH RETURNS - US Equities

A.I. Technical Strategy Performance

Institutional Backtest Insights & Methodology

1. The "Cash Drag" Reality

These individual single-asset metrics represent trades that go to cash (earn 0%) for safety during corrections. In a strong 12-month bull market, being in cash part of the time naturally lags a 100% fully invested buy-and-hold strategy. Active trading prioritizes capital preservation and downside protection.

2. Mean vs. Median Skew

Equally-weighted arithmetic averages are highly skewed upward by positive outliers (e.g., meme stocks gaining 1,000%+). While the market average is lifted by these outliers to 15.0%, the median stock return is much lower. Strategies maintain systematic consistency without relying on speculative outliers.

3. Dynamic Portfolio Outperformance

In real-world execution, capital is never left sitting idle in cash. When one trade exits, capital is dynamically reallocated to the highest-ranking active signal. In our 12-Month Portfolio simulation, this dynamic allocation generates a staggering +93.4% return, doubling the benchmark Buy & Hold return of 46.17%.