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Does anything beat buy & hold on Flow?

Every setup we tested on Flow — 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's out-of-sample profit factor (0.11) is below 1 — it lost money per trade on unseen data. Buy-and-hold benchmark: -66.0% CAGR over 5.4 years (-85.5% CAGR in the out-of-sample window).

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

Flow: Nothing Beat Buy-and-Hold, and We Checked Everything

For Flow, we ran 532 indicator configurations through the same pipeline we apply to every asset, and none cleared the bar. This is a common outcome in crypto, where simply holding FLOW produced a buy-and-hold CAGR of -66.0%% — alongside a maximum drawdown of -88.3%%, which is the price of admission. When the baseline compounds that hard, a timing rule has to be genuinely predictive, not just lucky during one bull run, to add anything. In a market that trades around the clock and moves violently, most rules here simply stepped out of moves that holding captured for free.

The best-looking candidate was Heikin-Ashi Trend on the weekly timeframe, posting an out-of-sample Sharpe of 0.49 against a multiple-testing hurdle of 2.8. That hurdle exists because picking the top result from 532 attempts manufactures apparent skill by construction. Only 98.7%% of setups beat holding at all, and the leader's edge did not hold up across 1.6 years of unseen data. Read this as evidence, not prophecy: crypto market structure shifts quickly, past performance does not predict future results, and a verdict of nothing today is a finding about history, 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

Heikin-Ashi Trend

Mechanical rule (exactly as backtested): Long while Heikin-Ashi candles are bullish. 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.

-1.5%
Total return
0.34
Sharpe
-88.3%
Max DD
29.8%
Win rate
47
Trades
+65.8%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.49 · alpha +99.6% · 10 trades over 1.6 yrs.

#2 · Trend · Daily

Pascal's Weighted MA

Mechanical rule (exactly as backtested): MA variant — binomial (Pascal's-triangle) weighted MA; long above a rising line. Signals are evaluated at daily-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

+76.4%
Total return
0.38
Sharpe
-61.1%
Max DD
33.3%
Win rate
72
Trades
+58.1%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.4 · alpha +81.9% · 22 trades over 2.4 yrs.

#3 · Trend · Daily

Range Filter

Mechanical rule (exactly as backtested): Smoothed range-based trend filter — long while the range filter is rising. Signals are evaluated at daily-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

-46.3%
Total return
-0.09
Sharpe
-69.6%
Max DD
40.2%
Win rate
97
Trades
+43.0%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.35 · alpha +79.6% · 22 trades over 2.4 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 FLAT.

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

We tested 532 setups (indicator × parameters × timeframe) on Flow. Only setups with ≥30 trades qualify (299 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 532 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 2.8 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 98.7% had positive out-of-sample alpha (median OOS Sharpe -0.42) — 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 299 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
1Heikin-Ashi TrendWeekly-1.5%0.34-88.3%29.8%47+65.8%0.49+99.6%10
2Pascal's Weighted MADaily+76.4%0.38-61.1%33.3%72+58.1%0.4+81.9%22
3Range FilterDaily-46.3%-0.09-69.6%40.2%97+43.0%0.35+79.6%22
4Keltner 10 (x1.5)Daily-6.2%0.08-53.7%47.7%44+49.8%0.33+78.5%13
5Chaikin VolatilityDaily+106.8%0.42-73.7%35.9%64+60.3%0.32+77.6%20
6Coral TrendDaily+350.3%0.6-69.3%31.6%38+71.7%0.27+74.3%12
7Acceleration BandsDaily+28.4%0.26-44.7%33.3%51+53.8%0.24+75.6%14
8Connors RSI-2Daily-96.7%-0.48-97.8%50.5%95+15.3%0.24+69.5%32
9Tweezer BottomDaily-28.4%0.01-74.9%48.0%50+46.4%0.21+73.4%15
10Std Error ChannelDaily+67.5%0.38-63.5%31.2%64+57.4%0.2+71.6%22
11QQE MODDaily-45.3%0.08-81.0%29.2%72+43.2%0.19+71.8%19
12Impulse MACDDaily-0.6%0.16-73.7%38.2%55+50.5%0.18+74.5%13
13Adaptive SupertrendDaily+349.5%0.6-67.9%34.0%47+71.7%0.15+68.9%13
14ALMA 100 TrendDaily-23.2%0.13-57.1%27.3%33+47.3%0.14+71.8%10
15Hull MA 30 TrendDaily-79.2%-0.16-89.9%36.6%112+32.4%0.12+66.9%28
16TRIMA 30 TrendDaily-33.3%0.12-74.6%30.0%40+45.6%0.11+70.4%12
17Lorentzian ClassificationDaily-38.3%0.09-72.1%46.8%263+44.6%0.1+64.3%102
18WMA 10/30 CrossDaily-10.2%0.26-75.4%27.5%40+49.2%0.08+65.0%12
19Ulcer IndexDaily-59.8%-0.09-65.2%22.2%45+39.6%0.07+69.9%11
20TSI (13,7)Daily-3.6%0.27-72.2%30.8%52+50.1%0.07+64.8%16

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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