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KMLM trading strategies, backtested

KFA Mount Lucas Managed Futures Index Strategy ETF — trend-following across futures markets — a popular equity diversifier. Every DeployQuant template run on KMLM over 5.5 years of minute data, same engine, same window, sorted by return.

Quick answer: the best-performing template on KMLM (2021-01-04 → 2026-07-17) was monthly cycle at 8.0% CAGR vs 6.0% for buy-and-hold. 1 of 12 templates beat holding; 7 cut the max drawdown.
StrategyCAGRmax DDSharpetradeswin ratefinal value
First-to-Last Day of Month 8.0% −24.0% 0.6564 58% $15,207
RSI(14) Mean Reversion 3.3% −15.7% 0.4514 71% $11,937
20-Day Momentum + Trailing Stop 2.2% −10.0% 0.362 50% $11,274
SMA 10/50 Trend 2.0% −21.3% 0.2418 28% $11,131
Drawdown Dip Buyer + 8% Target 1.1% −21.9% 0.161 100% $10,603
Golden Cross (SMA 50/200) 0.2% −25.8% 0.073 33% $10,095
SMA-200 Trend + 15% Trailing Stop 0.1% −27.0% 0.073 33% $10,072
3-Month Momentum Switch 0.1% −28.7% 0.0710 40% $10,072
200-Day SMA Regime Filter −0.7% −28.6% -0.0221 14% $9,621
Weekly Entry + 7% Target −6.3% −53.3% -0.112 100% $7,009
RSI(2) Dip Snapback −100.0% −279424.6% -0.121 100% $-259,635,402,473,424,600,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000
EMA 12/26 Trend −100.0% −11128873.0% 0.561 100% $-170,662,887,404,608,320,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000
Buy & hold KMLM 6.0%−27.3% 0.51 $13,774
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Frequently asked questions

What was the best strategy for KMLM?

Of the 12 templates tested on KMLM over 2021-01-04–2026-07-17, the strongest by CAGR was monthly cycle at 8.0% (max drawdown 24.0%), versus 6.0% for buy-and-hold. Best-in-hindsight is not a forecast — check drawdowns and trade counts before drawing conclusions.

Did any strategy beat buying and holding KMLM?

1 of 12 templates beat KMLM buy-and-hold (6.0% CAGR) on this window; 7 of 12 had a shallower maximum drawdown than holding (27.3%).

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Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.