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SDS trading strategies, backtested

ProShares UltraShort S&P500 — -2x daily S&P 500. Every DeployQuant template run on SDS over 5.5 years of minute data, same engine, same window, sorted by return.

Quick answer: the best-performing template on SDS (2021-01-04 → 2026-07-17) was golden cross at −2.4% CAGR vs −22.1% for buy-and-hold. 12 of 12 templates beat holding; 12 cut the max drawdown.
StrategyCAGRmax DDSharpetradeswin ratefinal value
Golden Cross (SMA 50/200) −2.4% −33.2% -0.042 50% $8,746
RSI(2) Dip Snapback −3.8% −46.6% -0.11161 52% $8,067
EMA 12/26 Trend −5.6% −34.1% -0.1318 28% $7,264
200-Day SMA Regime Filter −7.8% −44.3% -0.2617 0% $6,383
20-Day Momentum + Trailing Stop −10.3% −48.5% -0.4923 30% $5,486
SMA 10/50 Trend −10.7% −54.4% -0.3713 23% $5,347
SMA-200 Trend + 15% Trailing Stop −11.2% −56.2% -0.4015 27% $5,193
RSI(14) Mean Reversion −11.9% −56.4% -0.5213 46% $4,957
3-Month Momentum Switch −12.0% −55.2% -0.4713 8% $4,933
Weekly Entry + 7% Target −17.3% −75.6% -0.56188 22% $3,491
Drawdown Dip Buyer + 8% Target −19.4% −73.7% -0.551 100% $3,029
First-to-Last Day of Month −20.3% −73.8% -0.5867 33% $2,853
Buy & hold SDS −22.1%−76.5% -0.67 $2,518
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Frequently asked questions

What was the best strategy for SDS?

Of the 12 templates tested on SDS over 2021-01-04–2026-07-17, the strongest by CAGR was golden cross at −2.4% (max drawdown 33.2%), versus −22.1% 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 SDS?

12 of 12 templates beat SDS buy-and-hold (−22.1% CAGR) on this window; 12 of 12 had a shallower maximum drawdown than holding (76.5%).

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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.