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Does anything beat buy & hold on Martin Marietta Materials (MLM)?

Every setup we tested on Martin Marietta Materials (MLM) — 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: +11.6% CAGR over 32.4 years (+13.6% CAGR in the out-of-sample window).

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

MLM: we tested 757 setups and none beat simply holding Martin Marietta Materials

For Martin Marietta Materials (MLM), we ran 757 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, Trade Volume Index on the weekly timeframe, ranked at the top in-sample but delivered an out-of-sample Sharpe of 0.8, short of our hurdle of 1.17. Buy-and-hold returned +11.6% 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 757 setups and keep the best one, something will always look impressive by chance alone. That is why we require the survivor to clear 1.17 out of sample. Trade Volume Index managed 0.8, with out-of-sample alpha of +1.2% across 9.7 years and 113 trades, and only 0.9% 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 · Volume · Weekly

Trade Volume Index

Mechanical rule (exactly as backtested): TVI — accumulates volume by tick direction; long while above its average. 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.

+251.6%
Total return
0.29
Sharpe
-85.5%
Max DD
47.8%
Win rate
113
Trades
-7.7%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.8 · alpha +1.2% · 28 trades over 9.7 yrs.

#2 · Trend · Daily

WMA 20/50 Cross

Mechanical rule (exactly as backtested): Weighted moving-average cross — recent prices weighted more heavily. 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.

+862.4%
Total return
0.43
Sharpe
-55.9%
Max DD
43.7%
Win rate
103
Trades
-4.4%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.76 · alpha +1.1% · 27 trades over 9.7 yrs.

#3 · Trend · Daily

WMA 15/60 Cross

Mechanical rule (exactly as backtested): VARIANT — WMA 15/60 cross; long while fast leads slow. 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.

+703.3%
Total return
0.41
Sharpe
-61.4%
Max DD
38.7%
Win rate
106
Trades
-5.0%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.74 · alpha +0.6% · 27 trades over 9.7 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 757 setups (indicator × parameters × timeframe) on Martin Marietta Materials (MLM). Only setups with ≥30 trades qualify (687 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 757 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 1.17 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 0.9% had positive out-of-sample alpha (median OOS Sharpe 0.32) — 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 687 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
1Trade Volume IndexWeekly+251.6%0.29-85.5%47.8%113-7.7%0.8+1.2%28
2WMA 20/50 CrossDaily+862.4%0.43-55.9%43.7%103-4.4%0.76+1.1%27
3WMA 15/60 CrossDaily+703.3%0.41-61.4%38.7%106-5.0%0.74+0.6%27
4AroonDaily+557.9%0.37-64.4%43.5%278-5.7%0.72+0.3%88
5Aroon OscillatorDaily+557.9%0.37-64.4%43.5%278-5.7%0.72+0.3%88
6SMA 10/40 CrossDaily+968.6%0.44-56.4%42.7%117-4.1%0.72-0.1%32
7QQE MODWeekly+235.0%0.31-61.6%43.8%73-7.8%0.72-3.5%16
8Least Squares MAWeekly>+999%0.49-55.6%50.8%132-3.1%0.71-0.5%41
9Net VolumeWeekly+346.3%0.33-71.0%47.7%88-6.9%0.71-1.5%28
10Liquidity Flow OscillatorWeekly+346.3%0.33-71.0%47.7%88-6.9%0.71-1.5%28
11Williams AlligatorDaily+443.1%0.37-43.3%48.5%388-6.3%0.71-1.6%117
12Ehlers Roofing FilterDaily>+999%0.58-38.3%57.1%140-0.6%0.69-0.6%40
13Supertrend (14,4)Daily+768.5%0.42-63.0%42.0%69-4.8%0.68-0.9%17
14Jurik MA (approx.)Weekly+808.8%0.45-54.3%47.2%159-4.6%0.67-2.1%47
15QQEWeekly>+999%0.53-61.0%43.6%101+0.5%0.65+2.2%33
16SMA 10/30 CrossDaily>+999%0.51-45.6%50.3%149-2.2%0.65-1.5%44
17Gann HiLo ActivatorWeekly+947.9%0.44-56.1%43.4%113-4.1%0.64-1.5%32
18Zero-Lag MACDWeekly>+999%0.57-40.7%55.2%134-0.9%0.63-1.5%39
19Zero-Lag MACDWeekly>+999%0.57-40.7%55.2%134-0.9%0.63-1.5%39
20T3 10/40 CrossDaily+577.1%0.39-62.6%45.3%95-5.6%0.63-2.4%28

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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