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Does anything beat buy & hold on Texas Pacific Land Corporation (TPL)?

Every setup we tested on Texas Pacific Land Corporation (TPL) — 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.

VALIDATED

Beat buy-and-hold out-of-sample AND cleared the multiple-testing hurdle.

Beat buy-and-hold out-of-sample AND full-sample out-of-sample Sharpe 1.41 cleared the selection hurdle 0.98. Buy-and-hold benchmark: +15.5% CAGR over 46.2 years (+36.1% CAGR in the out-of-sample window).

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

Texas Pacific Land Corporation (TPL): One Setup Cleared the Bar — What That Does and Doesn't Mean

A validated verdict on an individual stock is rare, and it should be. Single companies are earnings-driven and idiosyncratic: one guidance cut or CEO exit can swamp any technical signal. We ran 764 indicator setups on Texas Pacific Land Corporation, of which 722 had enough history to qualify. Most stocks in our universe produce nothing that beats simply holding shares. Here, KAMA 10/30 Cross on the daily timeframe outperformed buy-and-hold in both the full window and the held-out period, and its out-of-sample Sharpe of 1.41 cleared the multiple-testing hurdle of 0.98. A signal that survived 13.9 years of company-specific noise is worth documenting.

Read this as a record, not a promise. Out-of-sample alpha of +7.5% (full-window +0.6%) against a buy-and-hold CAGR of +15.5% came with a win rate of 47.6%, a maximum drawdown of -50.4%, and 170 trades — enough to measure, few enough that a handful of outcomes shaped the result. Only 17.9% of setups beat holding at all, so selection pressure is real even after the hurdle. Note the survivorship trap: TPL exists today to be tested; delisted peers don't. Companies change, regimes change, and past validation does not predict future results.

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

The rules

Top setups as mechanical rules

Exactly as the backtest defined them — no discretionary steps, no hidden filters.

#1 · Trend · Daily

KAMA 10/30 Cross

Mechanical rule (exactly as backtested): MA variant — Kaufman adaptive-MA 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.

>+999%
Total return
0.77
Sharpe
-50.4%
Max DD
47.6%
Win rate
170
Trades
+0.6%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.41 · alpha +7.5% · 46 trades over 13.9 yrs.

#2 · Trend · Daily

Hull Suite

Mechanical rule (exactly as backtested): Hull Moving Average trend — long while the 55-period Hull MA 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.

>+999%
Total return
0.82
Sharpe
-44.3%
Max DD
44.9%
Win rate
256
Trades
+2.4%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.4 · alpha +8.9% · 71 trades over 13.9 yrs.

#3 · Trend · Daily

Pivot Point SuperTrend

Mechanical rule (exactly as backtested): SuperTrend anchored on recent pivot points instead of HL2 - long while the pivot SuperTrend is up (2/3/10). 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.

>+999%
Total return
0.87
Sharpe
-53.3%
Max DD
48.6%
Win rate
107
Trades
+4.8%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.34 · alpha +9.5% · 20 trades over 13.9 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 LONG.

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

We tested 764 setups (indicator × parameters × timeframe) on Texas Pacific Land Corporation (TPL). Only setups with ≥30 trades qualify (722 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 764 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 0.98 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 17.9% had positive out-of-sample alpha (median OOS Sharpe 0.95) — 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 722 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
1KAMA 10/30 CrossDaily>+999%0.77-50.4%47.6%170+0.6%1.41+7.5%46
2Hull SuiteDaily>+999%0.82-44.3%44.9%256+2.4%1.4+8.9%71
3Pivot Point SuperTrendDaily>+999%0.87-53.3%48.6%107+4.8%1.34+9.5%20
4Guppy Multiple MADaily>+999%0.83-54.1%38.9%175+3.3%1.34+8.9%44
5KDJWeekly>+999%0.75-35.9%49.5%222+0.8%1.33+4.7%62
6ROC (30)Daily>+999%0.77-50.4%39.5%441+1.5%1.31+6.2%120
7CMO (30)Daily>+999%0.77-50.4%39.5%441+1.5%1.31+6.2%120
8Momentum (30)Daily>+999%0.77-50.4%39.5%441+1.5%1.31+6.2%120
9Stoch RSI (fast)Weekly>+999%0.74-55.0%47.5%240+1.1%1.31+5.3%67
10Supertrend (7,3)Daily>+999%0.74-69.4%44.7%215+0.3%1.29+4.2%41
11SMC: Fair Value GapWeekly>+999%0.68-69.9%48.3%118-0.1%1.28+9.0%25
12DeMarker (21)Daily>+999%0.84-53.1%42.6%427+3.5%1.28+5.3%129
13FRAMA 30 TrendWeekly>+999%0.77-38.6%51.1%231+0.6%1.28+1.9%70
14Keltner BreakoutDaily>+999%0.83-39.7%45.5%176-0.8%1.28-5.4%42
15Trend MagicWeekly>+999%0.79-54.1%45.6%125+2.9%1.27+6.9%33
16Relative Volatility IndexDaily>+999%0.83-47.8%43.9%626+2.8%1.27+6.2%165
17ROC (60)Daily>+999%0.81-56.3%38.6%254+3.1%1.27+6.2%62
18Regularized EMAWeekly>+999%0.79-45.6%50.0%140+2.9%1.27+5.7%35
19WMA 15/60 CrossDaily>+999%0.84-54.9%46.5%144+3.5%1.27+5.5%38
20CMO (21)Daily>+999%0.79-57.3%40.6%527+2.0%1.27+4.8%147

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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