Home / Strategies / Sea Ltd
Stock · strategy report

Does anything beat buy & hold on Sea Ltd?

Every setup we tested on Sea Ltd — 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 trailed buy-and-hold out-of-sample. Buy-and-hold benchmark: +21.7% CAGR over 8.7 years (+41.9% CAGR in the out-of-sample window).

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

SE: we tested 618 setups and none beat simply holding Sea Ltd

For Sea Ltd (SE), we ran 618 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, Pring's Special K on the daily timeframe, ranked at the top in-sample but delivered an out-of-sample Sharpe of 1.58, short of our hurdle of 2.22. Buy-and-hold returned +21.7% 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 618 setups and keep the best one, something will always look impressive by chance alone. That is why we require the survivor to clear 2.22 out of sample. Pring's Special K managed 1.58, with out-of-sample alpha of -5.6% across 2.6 years and 78 trades, and only 3.8% 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 · Momentum · Daily

Pring's Special K

Mechanical rule (exactly as backtested): Martin Pring's Special K (weighted multi-ROC) — long while positive and 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.

+431.4%
Total return
0.84
Sharpe
-40.7%
Max DD
53.8%
Win rate
78
Trades
-0.4%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.58 · alpha -5.6% · 21 trades over 2.6 yrs.

#2 · Momentum · Weekly

Zero-Lag MACD

Mechanical rule (exactly as backtested): MACD built on zero-lag EMAs for faster signals - long while the zero-lag MACD line is above its signal. 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.

+78.9%
Total return
0.37
Sharpe
-91.4%
Max DD
54.3%
Win rate
35
Trades
-14.6%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.53 · alpha +19.8% · 10 trades over 2.6 yrs.

#3 · Trend · Weekly

Elder Impulse

Mechanical rule (exactly as backtested): Long when both the 13-EMA and the MACD histogram are rising (green impulse). 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.

+297.5%
Total return
0.64
Sharpe
-58.3%
Max DD
52.1%
Win rate
48
Trades
-4.4%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.53 · alpha +1.2% · 12 trades over 2.6 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 2026-07-02. Currently FLAT.

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

We tested 618 setups (indicator × parameters × timeframe) on Sea Ltd. Only setups with ≥30 trades qualify (369 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 618 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 2.22 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 3.8% had positive out-of-sample alpha (median OOS Sharpe 0.71) — 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 369 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
1Pring's Special KDaily+431.4%0.84-40.7%53.8%78-0.4%1.58-5.6%21
2Zero-Lag MACDWeekly+78.9%0.37-91.4%54.3%35-14.6%1.53+19.8%10
3Elder ImpulseWeekly+297.5%0.64-58.3%52.1%48-4.4%1.53+1.2%12
4Williams %R (50)Daily>+999%0.92-56.0%38.9%54+13.3%1.28+2.1%16
5KAMA 200 TrendDaily>+999%1.04-43.7%44.4%36+18.6%1.27-0.1%10
6SMC: Order BlockDaily>+999%0.89-47.8%44.6%56+10.4%1.27-1.9%17
7Waddah Attar ExplosionDaily-66.3%-0.38-82.1%44.2%120-33.5%1.27-16.9%29
8Impulse MACDDaily+152.2%0.51-43.4%48.8%125-10.4%1.26-12.0%35
9Parabolic SAR (fast)Daily+48.7%0.32-77.6%43.9%155-17.0%1.25-1.5%42
10Ichimoku CloudDaily>+999%1.07-46.3%43.3%30+19.8%1.24-3.2%10
11FRAMA 10/30 CrossWeekly>+999%0.91-46.9%66.7%39+12.3%1.2+6.3%16
12SMC: Liquidity SweepDaily+98.7%0.4-80.9%73.5%34-13.5%1.2+2.9%12
13Exponential Hull MAWeekly+838.7%0.88-53.2%58.3%36+7.7%1.19-3.7%11
14ZLEMA 200 TrendDaily>+999%1.01-47.2%45.3%53+13.6%1.18-6.8%17
15HMA 9/21 CrossDaily-6.0%0.2-85.1%46.7%150-22.4%1.16-3.0%41
16CCI (50)Daily>+999%0.96-60.2%36.7%49+15.5%1.16-4.3%15
17Perfect Trend LineWeekly+323.5%0.61-75.0%48.0%50-3.5%1.16-5.9%13
18Williams %RDaily+343.9%0.62-78.9%68.9%61-2.9%1.15-3.1%22
19Chande Forecast Osc.Weekly+68.9%0.36-86.0%47.4%57-15.3%1.15-3.5%14
20SMA 10/40 CrossDaily+728.4%0.79-78.7%46.9%32+6.0%1.15-4.5%12

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.

Keep digging