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Does anything beat buy & hold on Dollar General (DG)?

Every setup we tested on Dollar General (DG) — ranked out-of-sample, corrected for multiple testing, and forward-tracked in public from the day this page published. The honest answer is the headline.

NOTHING BEAT BUY-AND-HOLD

No setup beat simply holding once tested honestly. We say so plainly.

Its best setup only beat buy-and-hold in one window — a regime artifact, not a strategy. Buy-and-hold benchmark: +10.5% CAGR over 16.6 years (-12.0% CAGR in the out-of-sample window).

Educational research from historical backtests — not investment advice. Past performance does not predict future results.

DG: we tested 726 setups and none beat simply holding Dollar General

For Dollar General (DG), we ran 726 indicator configurations against a plain buy-and-hold benchmark, and none of them earned the right to replace it. Individual stocks carry idiosyncratic risk — earnings surprises, guidance changes, sector rotation — that indicators built on price history cannot see coming. The best-looking setup, Jurik MA (approx.) on the weekly timeframe, ranked at the top in-sample but delivered an out-of-sample Sharpe of 0.84, short of our hurdle of 1.62. Buy-and-hold returned +10.5% annualized over the test period; the top strategies mostly captured pieces of that same move while adding trading friction.

How to read this honestly: when you test 726 setups and keep the best one, something will always look impressive by chance alone. That is why we require the survivor to clear 1.62 out of sample. Jurik MA (approx.) managed 0.84, with out-of-sample alpha of +28.8% across 5.0 years and 81 trades, and only 90.2% of everything we tested beat the benchmark on unseen data — roughly what luck would produce. None of this predicts anything: the regime that generated these numbers can shift, and single stocks shift faster than most. Treat this page as a record of what failed under honest testing, not a forecast.

Every figure above is computed from our own backtests — nothing is estimated or invented. Hypothetical results; not investment advice.

Failure exhibit

The least-bad setups — shown with their failure numbers

Nothing here earned a verdict — these are the best of a losing field, published so you can see exactly how "best" still failed.

#1 · Trend · Weekly

Jurik MA (approx.)

Mechanical rule (exactly as backtested): Approximation of Jurik's low-lag adaptive MA (exact JMA is proprietary) — long while price holds above a rising JMA. Signals are evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

+176.9%
Total return
0.43
Sharpe
-22.1%
Max DD
50.6%
Win rate
81
Trades
-4.2%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.84 · alpha +28.8% · 16 trades over 5.0 yrs.

#2 · Trend · Weekly

TEMA 30 Trend

Mechanical rule (exactly as backtested): VARIANT — price above a rising TEMA(30). Signals are evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

+310.3%
Total return
0.6
Sharpe
-19.5%
Max DD
57.8%
Win rate
64
Trades
-1.7%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.84 · alpha +28.0% · 13 trades over 5.0 yrs.

#3 · Trend · Weekly

Exponential Hull MA

Mechanical rule (exactly as backtested): MA variant — EMA-based Hull MA; low-lag; long above a rising line. Signals are evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

+199.3%
Total return
0.47
Sharpe
-23.3%
Max DD
51.5%
Win rate
68
Trades
-3.7%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.82 · alpha +27.7% · 11 trades over 5.0 yrs.

Forward test

Since publication — including if it loses

0.0%
the published setup, since 2026-07-02 (0 market days)
0.0%
buy & hold, same window

The forward record is just getting started — the gap between the two is the honest score. Marked to market nightly from real prices, rules frozen at publication, as of 2026-06-29. Currently LONG.

How this verdict was computed (mode: out-of-sample)

We tested 726 setups (indicator × parameters × timeframe) on Dollar General (DG). Only setups with ≥30 trades qualify (572 did). Setups are ranked by out-of-sample Sharpe — the last ~30% of history, which standard-parameter rules never saw during selection. Because picking the best of 726 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 1.62 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 90.2% had positive out-of-sample alpha (median OOS Sharpe -0.01) — the table below is truncated, but this summary covers all of them. Full recipe: methodology · the engine’s contract lives in the repo as STRATEGY_METHODOLOGY.md.

Ranked table

Top 20 of 572 eligible setups

Ranked by out-of-sample Sharpe. Full + out-of-sample columns, costs included. Hypothetical.

#SetupTFTotal retSharpeMax DDWinTradesα vs B&HOOS SharpeOOS αOOS trades
1Jurik MA (approx.)Weekly+176.9%0.43-22.1%50.6%81-4.2%0.84+28.8%16
2TEMA 30 TrendWeekly+310.3%0.6-19.5%57.8%64-1.7%0.84+28.0%13
3Exponential Hull MAWeekly+199.3%0.47-23.3%51.5%68-3.7%0.82+27.7%11
4Derivative OscillatorWeekly+103.8%0.38-21.6%52.7%55-6.2%0.82+24.5%14
5WMA 15/60 CrossDaily+378.6%0.57-35.7%46.0%50-0.7%0.81+28.6%12
6Super Smoother (Ehlers)Weekly+127.5%0.37-33.4%51.6%62-5.5%0.78+26.3%11
7Williams %R (7)Weekly+406.6%0.6-25.6%51.4%74-0.3%0.77+27.6%17
8MBFX TimingWeekly+406.6%0.6-25.6%51.4%74-0.3%0.77+27.6%17
9ALMA 100 TrendDaily+105.2%0.33-33.9%43.9%123-6.2%0.74+26.0%21
10EMA 10/40 CrossDaily+241.1%0.47-27.9%43.5%62-2.9%0.73+26.4%12
11Hull MA 200 TrendDaily+99.8%0.33-32.5%44.5%110-6.3%0.72+24.6%13
12WMA 20/50 CrossDaily+333.8%0.55-39.0%48.1%52-1.3%0.71+26.1%13
13UT Bot (ATR Trailing)Weekly+339.0%0.56-25.9%50.0%54-1.2%0.7+26.0%12
14ADX / DMIDaily+32.9%0.19-42.5%43.6%117-8.9%0.7+24.2%26
15KAMA 10/30 CrossDaily+185.8%0.42-29.9%40.7%54-4.0%0.69+25.5%16
16Waddah Attar ExplosionWeekly-10.5%-0.01-55.7%47.2%53-11.2%0.68+21.2%10
17Triangular Hull MAWeekly+160.4%0.44-21.1%55.9%59-4.6%0.67+22.9%12
18Guppy Multiple MADaily+315.0%0.52-24.5%41.4%70-1.6%0.63+23.9%15
19Hull MA 30 TrendWeekly+140.1%0.41-24.0%52.5%59-5.1%0.62+21.7%13
20DEMA 100 TrendDaily+120.7%0.36-29.4%35.4%161-5.7%0.61+23.1%32

Hypothetical backtests with 0.08%/side costs. Not investment advice — see the full disclaimer.

Read this before acting on anything

These are historical backtests of mechanical rules. They are educational research, not investment advice, not a recommendation, and not tailored to you. Educational information only — not investment advice. Hypothetical backtested results; past performance does not guarantee future results. Trading involves risk of loss.

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