SOXS trading strategies, backtested
Direxion Daily Semiconductor Bear 3X Shares — -3x daily semiconductors — extreme decay outside sharp selloffs. Every DeployQuant template run on SOXS over 5.5 years of minute data, same engine, same window, sorted by return.
| Strategy | CAGR | max DD | Sharpe | trades | win rate | final value |
|---|---|---|---|---|---|---|
| SMA-200 Trend + 15% Trailing Stop | 9.2% | −26.8% | 0.47 | 7 | 57% | $16,254 |
| 20-Day Momentum + Trailing Stop | 1.3% | −45.1% | 0.18 | 48 | 35% | $10,740 |
| 200-Day SMA Regime Filter | −2.9% | −55.6% | 0.11 | 2 | 0% | $8,504 |
| Golden Cross (SMA 50/200) | −7.3% | −51.8% | -0.22 | 1 | 0% | $6,595 |
| 3-Month Momentum Switch | −14.2% | −58.9% | -0.25 | 12 | 17% | $4,287 |
| EMA 12/26 Trend | −20.3% | −73.6% | -0.32 | 12 | 0% | $2,853 |
| SMA 10/50 Trend | −20.4% | −71.6% | -0.32 | 7 | 14% | $2,841 |
| RSI(2) Dip Snapback | −26.6% | −90.1% | -0.40 | 70 | 50% | $1,810 |
| Weekly Entry + 7% Target | −28.6% | −93.2% | -0.67 | 123 | 47% | $1,547 |
| Drawdown Dip Buyer + 8% Target | −30.7% | −88.1% | -0.46 | 1 | 100% | $1,318 |
| RSI(14) Mean Reversion | −38.2% | −95.6% | -0.76 | 5 | 40% | $696 |
| First-to-Last Day of Month | −50.5% | −98.8% | -0.70 | 29 | 28% | $204 |
| Buy & hold SOXS | −30.5% | −88.0% | -0.46 | — | — | $1,337 |
Build it from blocks (or type it in English), backtest it on 5.5 years of minute data in seconds, tweak any parameter, then paper trade it on live data. No card, no broker needed to start.
Frequently asked questions
What was the best strategy for SOXS?
Of the 12 templates tested on SOXS over 2021-01-04–2026-07-17, the strongest by CAGR was trend + trailing stop at 9.2% (max drawdown 26.8%), versus −30.5% 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 SOXS?
9 of 12 templates beat SOXS buy-and-hold (−30.5% CAGR) on this window; 7 of 12 had a shallower maximum drawdown than holding (88.0%).
Other inverse etfs
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.