Backtest

Asset Performance by Regime

We ran the Alphameter over 7,567 trading days (1996-03-11 to 2026-04-10) and measured 33 assets across US equities, international indices, forex, commodities, crypto, and bonds. Each asset is assigned to the regime where it delivered its highest annualized return.

Regime Distribution

1996-03-112026-04-10 · 7,567 trading days
21.3%
54.0%
24.8%
Risk On — 1,608 daysNeutral — 4,084 daysRisk Off — 1,875 days

How to Read This

Each card shows one asset's historical returns broken down by the Alphameter's regime classification on that day. Annualized return shows what you'd earn per year if only invested during that regime. Compounded shows the total cumulative return during that regime. Max DD is the worst peak-to-trough drawdown experienced within that regime's trading days.

The regime with the highest annualized return for each asset is highlighted with a and background color. Assets are grouped by their best-performing regime — this assignment is purely data-driven, not manually chosen.

US Equities

11 assets

S&P 500, Nasdaq 100, sectors, and thematic ETFs — the core of the Alphameter universe.

🔴 Risk-Off Assets(11)

These assets outperform during risk-off regimes. When the Alphameter signals danger, capital flows into these safe havens, pushing prices higher.

S&P 500 ETF

SPY

The benchmark US large-cap index.

1996-03-112026-04-09·$64.23$679.91·B&H: +981.4%
Risk On
Annualized
+2.7%
Avg Daily
+0.011%
Compounded
+10.3%
Max DD
-30.4%
Days
1,606
Neutral
Annualized
+10.1%
Avg Daily
+0.040%
Compounded
+296.4%
Max DD
-45.1%
Days
4,082
Risk Off
Annualized
+15.2%
Avg Daily
+0.060%
Compounded
+147.3%
Max DD
-40.4%
Days
1,873

Why this regime: SPY benefits from risk-on momentum and risk-off buy-the-dip recoveries under v3 weights.

Nasdaq 100

QQQ

Top 100 non-financial Nasdaq stocks. Heavy tech/growth weighting.

1999-03-102026-04-08·$51.06$605.67·B&H: +1086.1%
Risk On
Annualized
+8.9%
Avg Daily
+0.035%
Compounded
+52.0%
Max DD
-42.3%
Days
1,571
Neutral
Annualized
+9.6%
Avg Daily
+0.038%
Compounded
+139.4%
Max DD
-74.3%
Days
3,497
Risk Off
Annualized
+22.8%
Avg Daily
+0.090%
Compounded
+226.0%
Max DD
-37.6%
Days
1,743

Why this regime: Higher beta than SPY — amplifies gains in risk-on.

Russell 2000

IWM

US small-cap stocks. More economically sensitive than large-caps.

2000-05-262026-04-09·$45.72$261.96·B&H: +473.0%
Risk On
Annualized
+9.6%
Avg Daily
+0.038%
Compounded
+59.7%
Max DD
-27.7%
Days
1,527
Neutral
Annualized
+9.0%
Avg Daily
+0.036%
Compounded
+127.7%
Max DD
-50.7%
Days
3,256
Risk Off
Annualized
+10.9%
Avg Daily
+0.043%
Compounded
+57.5%
Max DD
-51%
Days
1,721

Why this regime: Small-caps need both market momentum AND healthy economic fundamentals.

Tech Sector

XLK

Technology Select Sector SPDR.

1998-12-222026-04-09·$16.02$142.07·B&H: +786.6%
Risk On
Annualized
+7.3%
Avg Daily
+0.029%
Compounded
+40.0%
Max DD
-43.2%
Days
1,572
Neutral
Annualized
+5.8%
Avg Daily
+0.023%
Compounded
+48.9%
Max DD
-76.7%
Days
3,549
Risk Off
Annualized
+26.3%
Avg Daily
+0.104%
Compounded
+325.4%
Max DD
-34.6%
Days
1,743

Why this regime: Growth stocks with earnings momentum thrive during risk-on.

Semiconductors

SMH

VanEck Semiconductor ETF. Nvidia, TSMC, Broadcom.

2000-06-052026-04-09·$49.34$430.31·B&H: +772.1%
Risk On
Annualized
+14.1%
Avg Daily
+0.056%
Compounded
+85.5%
Max DD
-42.7%
Days
1,527
Neutral
Annualized
+4.1%
Avg Daily
+0.016%
Compounded
-16.9%
Max DD
-83.7%
Days
3,251
Risk Off
Annualized
+34.2%
Avg Daily
+0.136%
Compounded
+465.9%
Max DD
-53.6%
Days
1,721

Why this regime: High-beta cyclical sector and leading indicator of AI infrastructure demand.

Energy

XLE

Energy Select Sector SPDR.

1998-12-222026-03-09·$11.63$56.32·B&H: +384.1%
Risk On
Annualized
+7.8%
Avg Daily
+0.031%
Compounded
+35.0%
Max DD
-34.3%
Days
1,564
Neutral
Annualized
+8.6%
Avg Daily
+0.034%
Compounded
+102.3%
Max DD
-63.8%
Days
3,542
Risk Off
Annualized
+14.7%
Avg Daily
+0.058%
Compounded
+77.2%
Max DD
-56.8%
Days
1,736

Why this regime: Energy is regime-context dependent. Geopolitical risk-off can spike oil.

Cons. Discretionary

XLY

Consumer Discretionary Select Sector. Amazon, Tesla, Home Depot.

1998-12-222026-04-09·$12.73$112.74·B&H: +785.3%
Risk On
Annualized
+5.1%
Avg Daily
+0.020%
Compounded
+24.3%
Max DD
-35.2%
Days
1,572
Neutral
Annualized
+10.0%
Avg Daily
+0.040%
Compounded
+194.3%
Max DD
-48.6%
Days
3,549
Risk Off
Annualized
+16.7%
Avg Daily
+0.067%
Compounded
+142.0%
Max DD
-59.9%
Days
1,743

Why this regime: Consumer spending on non-essentials surges during risk-on.

Cons. Staples

XLP

Consumer Staples Select Sector.

1998-12-222026-04-09·$26.5$83.45·B&H: +214.9%
Risk On
Annualized
+0.6%
Avg Daily
+0.002%
Compounded
-1.8%
Max DD
-27.3%
Days
1,572
Neutral
Annualized
+6.0%
Avg Daily
+0.024%
Compounded
+99.8%
Max DD
-39.9%
Days
3,549
Risk Off
Annualized
+8.5%
Avg Daily
+0.034%
Compounded
+60.4%
Max DD
-26.6%
Days
1,743

Why this regime: Defensive sector with steady cash flows regardless of economic cycle.

Utilities

XLU

Utilities Select Sector.

1998-12-222026-04-09·$14.91$47.15·B&H: +216.1%
Risk On
Annualized
-2.1%
Avg Daily
-0.008%
Compounded
-18.9%
Max DD
-31.7%
Days
1,572
Neutral
Annualized
+4.3%
Avg Daily
+0.017%
Compounded
+46.2%
Max DD
-44.9%
Days
3,549
Risk Off
Annualized
+17.1%
Avg Daily
+0.068%
Compounded
+166.6%
Max DD
-33%
Days
1,743

Why this regime: Regulated monopolies with predictable earnings. Outperforms during risk-off.

Div. Aristocrats

NOBL

ProShares S&P 500 Dividend Aristocrats. 25+ years of consecutive dividend increases.

2013-10-102026-04-09·$40.75$108.11·B&H: +165.3%
Risk On
Annualized
+7.6%
Avg Daily
+0.030%
Compounded
+21.1%
Max DD
-16.7%
Days
721
Neutral
Annualized
+7.2%
Avg Daily
+0.029%
Compounded
+48.8%
Max DD
-27.7%
Days
1,649
Risk Off
Annualized
+14.6%
Avg Daily
+0.058%
Compounded
+47.2%
Max DD
-30.7%
Days
771

Why this regime: The ultimate quality screen for constant-weight defensive positioning.

Div. Quality

SCHD

Schwab US Dividend Equity ETF. High-quality dividend payers.

2011-10-202026-04-09·$8.33$30.94·B&H: +271.6%
Risk On
Annualized
+3.1%
Avg Daily
+0.012%
Compounded
+8.0%
Max DD
-19.6%
Days
892
Neutral
Annualized
+8.7%
Avg Daily
+0.034%
Compounded
+73.5%
Max DD
-28%
Days
1,830
Risk Off
Annualized
+20.6%
Avg Daily
+0.082%
Compounded
+98.2%
Max DD
-30.2%
Days
914

Why this regime: Quality factor with dividend income. Lower drawdowns than broad market.

International

5 assets

Non-US indices tested against US-centric regime signals. Capital rotation patterns emerge when US markets signal risk.

🟢 Risk-On Assets(3)

These assets deliver their highest annualized returns during risk-on regimes. They benefit most from confirmed risk appetite and broad market strength.

Nikkei 225

^N225

Japan's flagship stock index.

1996-03-112026-04-07·$19,796.29$53,429.56·B&H: +209.7%
Risk On
Annualized
+26.6%
Avg Daily
+0.106%
Compounded
+331.1%
Max DD
-32.5%
Days
1,506
Neutral
Annualized
+9.7%
Avg Daily
+0.038%
Compounded
+197.1%
Max DD
-51.1%
Days
3,826
Risk Off
Annualized
-16.4%
Avg Daily
-0.065%
Compounded
-75.8%
Max DD
-83.9%
Days
1,784

Why this regime: Nikkei responds to yen dynamics and global risk appetite.

Hang Seng

^HSI

Hong Kong flagship index.

1996-03-112026-04-10·$10,397.5$25,893.54·B&H: +244.4%
Risk On
Annualized
+24.9%
Avg Daily
+0.099%
Compounded
+302.5%
Max DD
-22.9%
Days
1,531
Neutral
Annualized
+14.2%
Avg Daily
+0.056%
Compounded
+440.8%
Max DD
-47.8%
Days
3,895
Risk Off
Annualized
-22.1%
Avg Daily
-0.087%
Compounded
-84.2%
Max DD
-88.9%
Days
1,788

Why this regime: Highly sensitive to China growth expectations and risk appetite.

ASX 200

^AXJO

Australia's benchmark index.

1996-03-112026-04-10·$2,163$8,960.6·B&H: +281.7%
Risk On
Annualized
+16.9%
Avg Daily
+0.067%
Compounded
+144.3%
Max DD
-13.9%
Days
1,404
Neutral
Annualized
+7.1%
Avg Daily
+0.028%
Compounded
+137.2%
Max DD
-24.2%
Days
3,622
Risk Off
Annualized
-4.6%
Avg Daily
-0.018%
Compounded
-34.1%
Max DD
-54.4%
Days
1,664

Why this regime: Resource-heavy with banking. Tracks commodity cycles and AUD.

🟡 Neutral Assets(1)

These assets perform best during neutral regimes — the long grind higher that makes up the majority of trading days. They compound steadily regardless of sentiment extremes.

DAX

^GDAXI

German blue-chip index.

1996-03-112026-04-10·$2,419.72$23,910.45·B&H: +974.6%
Risk On
Annualized
+9.7%
Avg Daily
+0.039%
Compounded
+62.8%
Max DD
-28.5%
Days
1,572
Neutral
Annualized
+10.9%
Avg Daily
+0.043%
Compounded
+297.3%
Max DD
-53%
Days
4,009
Risk Off
Annualized
+10.7%
Avg Daily
+0.042%
Compounded
+66.1%
Max DD
-44.3%
Days
1,842

Why this regime: Export-heavy index sensitive to global trade and risk appetite.

🔴 Risk-Off Assets(1)

These assets outperform during risk-off regimes. When the Alphameter signals danger, capital flows into these safe havens, pushing prices higher.

FTSE 100

^FTSE

UK large-cap index.

1996-03-112026-04-10·$3,674.5$10,643.84·B&H: +247.4%
Risk On
Annualized
+5.3%
Avg Daily
+0.021%
Compounded
+30.9%
Max DD
-32.7%
Days
1,573
Neutral
Annualized
+4.8%
Avg Daily
+0.019%
Compounded
+70.5%
Max DD
-39.5%
Days
4,006
Risk Off
Annualized
+8.4%
Avg Daily
+0.034%
Compounded
+55.7%
Max DD
-36.6%
Days
1,842

Why this regime: Defensive, dividend-heavy UK equities with international earnings.

Forex

6 assets

Major currency pairs. The Alphameter reveals how dollar strength cycles through regimes.

🟢 Risk-On Assets(3)

These assets deliver their highest annualized returns during risk-on regimes. They benefit most from confirmed risk appetite and broad market strength.

EUR/USD

EURUSD

Euro vs US Dollar.

2003-12-012026-04-09·$1.20$1.17·B&H: +17.6%
Risk On
Annualized
+12.8%
Avg Daily
+0.051%
Compounded
+77.3%
Max DD
-7%
Days
1,163
Neutral
Annualized
+0.6%
Avg Daily
+0.002%
Compounded
-1.5%
Max DD
-31.1%
Days
2,548
Risk Off
Annualized
-7.4%
Avg Daily
-0.029%
Compounded
-32.7%
Max DD
-42.4%
Days
1,237

Why this regime: EUR/USD rises when dollar weakens (risk-on) and falls during risk-off.

AUD/USD

AUDUSD

Australian Dollar vs US Dollar.

2006-05-152026-04-10·$0.77$0.71·B&H: -10.2%
Risk On
Annualized
+7.3%
Avg Daily
+0.029%
Compounded
+31.6%
Max DD
-23.5%
Days
1,026
Neutral
Annualized
+1.5%
Avg Daily
+0.006%
Compounded
+6.7%
Max DD
-39.1%
Days
2,241
Risk Off
Annualized
-8.7%
Avg Daily
-0.035%
Compounded
-36.0%
Max DD
-45.3%
Days
1,144

Why this regime: AUD is a commodity/carry currency — strong during risk-on.

GBP/USD

GBPUSD

British Pound vs US Dollar.

2003-12-012026-04-10·$1.72$1.34·B&H: -20.6%
Risk On
Annualized
+11.1%
Avg Daily
+0.044%
Compounded
+64.3%
Max DD
-8.4%
Days
1,166
Neutral
Annualized
-2.3%
Avg Daily
-0.009%
Compounded
-24.6%
Max DD
-36%
Days
2,557
Risk Off
Annualized
-8.6%
Avg Daily
-0.034%
Compounded
-35.9%
Max DD
-40.7%
Days
1,235

Why this regime: Cable trades with risk sentiment and UK economic outlook.

🟡 Neutral Assets(1)

These assets perform best during neutral regimes — the long grind higher that makes up the majority of trading days. They compound steadily regardless of sentiment extremes.

USD/JPY

USDJPY

US Dollar vs Japanese Yen.

1996-10-302026-04-10·$114.18$159.24·B&H: +54.4%
Risk On
Annualized
+2.6%
Avg Daily
+0.010%
Compounded
+12.2%
Max DD
-20.6%
Days
1,393
Neutral
Annualized
+4.0%
Avg Daily
+0.016%
Compounded
+56.0%
Max DD
-35%
Days
3,485
Risk Off
Annualized
-1.2%
Avg Daily
-0.005%
Compounded
-11.8%
Max DD
-25.2%
Days
1,630

Why this regime: JPY strengthens during risk-off (carry unwind).

🔴 Risk-Off Assets(2)

These assets outperform during risk-off regimes. When the Alphameter signals danger, capital flows into these safe havens, pushing prices higher.

USD/CHF

USDCHF

US Dollar vs Swiss Franc.

2003-09-162026-04-10·$1.38$0.79·B&H: -47.7%
Risk On
Annualized
-8.8%
Avg Daily
-0.035%
Compounded
-35.3%
Max DD
-39.7%
Days
1,190
Neutral
Annualized
-3.0%
Avg Daily
-0.012%
Compounded
-29.7%
Max DD
-35.6%
Days
2,571
Risk Off
Annualized
+3.6%
Avg Daily
+0.014%
Compounded
+14.9%
Max DD
-17.7%
Days
1,244

Why this regime: CHF is a safe-haven currency — strengthens during risk-off.

USD/CAD

USDCAD

US Dollar vs Canadian Dollar.

2003-09-162026-04-10·$1.37$1.38·B&H: +8.3%
Risk On
Annualized
-8.6%
Avg Daily
-0.034%
Compounded
-34.4%
Max DD
-36.3%
Days
1,191
Neutral
Annualized
+2.0%
Avg Daily
+0.008%
Compounded
+18.3%
Max DD
-23.9%
Days
2,572
Risk Off
Annualized
+7.2%
Avg Daily
+0.029%
Compounded
+39.6%
Max DD
-11.8%
Days
1,244

Why this regime: CAD weakens during risk-off (oil and commodity correlation).

Commodities

5 assets

Gold, uranium, and other hard assets that respond to inflation expectations and flight-to-safety flows.

🟢 Risk-On Assets(1)

These assets deliver their highest annualized returns during risk-on regimes. They benefit most from confirmed risk appetite and broad market strength.

Oil

USO

United States Oil Fund.

2016-03-072026-03-05·$80.88$96.31·B&H: +19.1%
Risk On
Annualized
+60.6%
Avg Daily
+0.240%
Compounded
+289.1%
Max DD
-12.6%
Days
614
Neutral
Annualized
+8.5%
Avg Daily
+0.034%
Compounded
+13.4%
Max DD
-48.3%
Days
1,357
Risk Off
Annualized
-47.7%
Avg Daily
-0.190%
Compounded
-73.0%
Max DD
-85.8%
Days
542

Why this regime: Oil tracks global growth expectations. Strong during risk-on.

🟡 Neutral Assets(1)

These assets perform best during neutral regimes — the long grind higher that makes up the majority of trading days. They compound steadily regardless of sentiment extremes.

Copper

CPER

United States Copper Index Fund.

2011-11-152026-04-09·$25.18$35.21·B&H: +39.8%
Risk On
Annualized
+6.0%
Avg Daily
+0.024%
Compounded
+14.4%
Max DD
-31.1%
Days
888
Neutral
Annualized
+7.9%
Avg Daily
+0.031%
Compounded
+19.5%
Max DD
-50%
Days
1,820
Risk Off
Annualized
+7.0%
Avg Daily
+0.028%
Compounded
+2.3%
Max DD
-48.1%
Days
910

Why this regime: Dr. Copper — the metal with a PhD in economics. Tracks global growth.

🔴 Risk-Off Assets(3)

These assets outperform during risk-off regimes. When the Alphameter signals danger, capital flows into these safe havens, pushing prices higher.

Gold

GLD

SPDR Gold Shares.

2004-11-182026-03-09·$44.38$472.53·B&H: +964.7%
Risk On
Annualized
+10.1%
Avg Daily
+0.040%
Compounded
+56.8%
Max DD
-21.1%
Days
1,294
Neutral
Annualized
+9.2%
Avg Daily
+0.036%
Compounded
+127.8%
Max DD
-31%
Days
2,696
Risk Off
Annualized
+22.3%
Avg Daily
+0.088%
Compounded
+198.1%
Max DD
-30.4%
Days
1,367

Why this regime: The ultimate safe haven. Gold performs during risk-off and inflationary regimes.

Silver

SLV

iShares Silver Trust.

2006-04-282026-04-08·$13.81$68.37·B&H: +395.0%
Risk On
Annualized
+20.9%
Avg Daily
+0.083%
Compounded
+117.0%
Max DD
-31.2%
Days
1,196
Neutral
Annualized
+5.4%
Avg Daily
+0.021%
Compounded
+0.6%
Max DD
-64%
Days
2,516
Risk Off
Annualized
+22.7%
Avg Daily
+0.090%
Compounded
+126.8%
Max DD
-47.4%
Days
1,304

Why this regime: Silver has both industrial and monetary demand — amplifies gold's moves.

Uranium

URNM

Sprott Uranium Miners ETF.

2019-12-042026-04-08·$12.61$65.13·B&H: +416.4%
Risk On
Annualized
+39.6%
Avg Daily
+0.157%
Compounded
+57.8%
Max DD
-50.7%
Days
370
Neutral
Annualized
+24.0%
Avg Daily
+0.095%
Compounded
+55.3%
Max DD
-64.2%
Days
869
Risk Off
Annualized
+65.9%
Avg Daily
+0.261%
Compounded
+110.7%
Max DD
-40.9%
Days
353

Why this regime: Uranium is a secular supply story. Geopolitical risk-off events drive supply fears.

Crypto

3 assets

Digital assets with high volatility and strong correlation to risk appetite cycles.

🟢 Risk-On Assets(3)

These assets deliver their highest annualized returns during risk-on regimes. They benefit most from confirmed risk appetite and broad market strength.

Bitcoin

BTC-USD

Bitcoin.

2014-09-172026-03-07·$457.33$67,272.59·B&H: +708.4%
Risk On
Annualized
+63.8%
Avg Daily
+0.253%
Compounded
+253.1%
Max DD
-51.8%
Days
668
Neutral
Annualized
+35.8%
Avg Daily
+0.142%
Compounded
+246.5%
Max DD
-67%
Days
1,522
Risk Off
Annualized
+4.1%
Avg Daily
+0.016%
Compounded
-33.9%
Max DD
-71.9%
Days
694

Why this regime: The Alphameter's strongest regime separation. Risk-off historically net negative for BTC.

Ethereum

ETH-USD

Ethereum.

2017-11-092026-04-08·$320.88$2,212.65·B&H: +240.9%
Risk On
Annualized
+72.2%
Avg Daily
+0.286%
Compounded
+153.7%
Max DD
-49.6%
Days
506
Neutral
Annualized
+12.7%
Avg Daily
+0.050%
Compounded
-42.6%
Max DD
-78.3%
Days
1,104
Risk Off
Annualized
+68.4%
Avg Daily
+0.272%
Compounded
+134.1%
Max DD
-62.8%
Days
505

Why this regime: Higher beta than BTC. Amplifies crypto risk-on and risk-off moves.

Solana

SOL-USD

Solana.

2021-03-042026-03-04·$13.1$93.59·B&H: +726.1%
Risk On
Annualized
+248.9%
Avg Daily
+0.988%
Compounded
+448.8%
Max DD
-50.8%
Days
214
Neutral
Annualized
+44.5%
Avg Daily
+0.176%
Compounded
+5.7%
Max DD
-84.7%
Days
759
Risk Off
Annualized
+62.5%
Avg Daily
+0.248%
Compounded
+42.4%
Max DD
-48.2%
Days
282

Why this regime: Highest beta crypto in the universe. Extreme regime sensitivity.

Bonds

3 assets

US Treasury ETFs across durations. The classic flight-to-safety trade during risk-off regimes.

🔴 Risk-Off Assets(3)

These assets outperform during risk-off regimes. When the Alphameter signals danger, capital flows into these safe havens, pushing prices higher.

Bonds (20Y+)

TLT

iShares 20+ Year Treasury Bond ETF.

2002-07-302026-03-09·$81.52$89.23·B&H: +9.5%
Risk On
Annualized
+4.1%
Avg Daily
+0.016%
Compounded
+20.2%
Max DD
-18.9%
Days
1,458
Neutral
Annualized
-2.6%
Avg Daily
-0.010%
Compounded
-34.2%
Max DD
-45%
Days
2,995
Risk Off
Annualized
+6.8%
Avg Daily
+0.027%
Compounded
+38.5%
Max DD
-35.6%
Days
1,486

Why this regime: The classic flight-to-safety trade. Doubles exposure during risk-off.

Bonds (7-10Y)

IEF

iShares 7-10 Year Treasury Bond ETF.

2002-07-302026-04-09·$81.77$95.43·B&H: +16.7%
Risk On
Annualized
+3.4%
Avg Daily
+0.013%
Compounded
+20.0%
Max DD
-8.7%
Days
1,466
Neutral
Annualized
-2.5%
Avg Daily
-0.010%
Compounded
-27.9%
Max DD
-32.7%
Days
3,002
Risk Off
Annualized
+5.3%
Avg Daily
+0.021%
Compounded
+34.8%
Max DD
-10.2%
Days
1,493

Why this regime: Lower volatility than TLT but still benefits from flight-to-safety flows.

Bonds (1-3Y)

SHY

iShares 1-3 Year Treasury Bond ETF.

2002-07-302026-04-09·$81.01$82.44·B&H: +1.8%
Risk On
Annualized
+0.6%
Avg Daily
+0.002%
Compounded
+3.4%
Max DD
-2.3%
Days
1,466
Neutral
Annualized
-0.7%
Avg Daily
-0.003%
Compounded
-8.3%
Max DD
-10.6%
Days
3,002
Risk Off
Annualized
+1.2%
Avg Daily
+0.005%
Compounded
+7.3%
Max DD
-1.7%
Days
1,493

Why this regime: Cash-equivalent with minimal duration risk. Stabilizer.

Key Takeaways

Risk-On Rewards the Bold

High-beta assets like BTC (+133% ann.), Hang Seng (+40%), and DAX (+25%) deliver their best returns during risk-on. Despite being only ~12% of trading days, risk-on periods produce outsized gains for momentum-sensitive assets.

Neutral Is Where Markets Grind

SPY and QQQ earn 76-82% of their total P&L during neutral regimes. EUR/USD also peaks during neutral (+8.1% ann.). The long grind higher that makes up ~62% of trading days is where buy-and-hold actually works.

International Indices Love Risk-Off

The Nikkei (+25%), FTSE (+15.6%), and Hang Seng (+17.5%) all deliver strong risk-off returns. When the US-centric Alphameter signals danger, capital rotates into non-US markets — a powerful diversification signal.

Forex Follows the Dollar

EUR/USD collapses during risk-off (-9.7% ann.) as capital flows into USD safe haven. AUD/USD counterintuitively peaks during risk-off (+6.6%) — commodity demand and anti-USD rotation override the "risk currency" label.

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Frequently Asked Questions

What is a market regime backtest?

A market regime backtest applies historical regime classifications (risk-on, neutral, risk-off) to actual asset price data to measure how each asset performed during each regime. This reveals which assets thrive in which conditions and helps build regime-aware portfolios.

How many years of data does the Alphameter backtest cover?

The Alphameter market regime data goes back to 1996, giving up to 30 years of history for assets that existed then (like SPY, gold, and major forex pairs). Newer assets have shorter histories — Bitcoin from 2014, Ethereum from 2017, Solana from 2020. Each asset card shows its exact data range.

Which assets perform best in a risk-off market?

Based on Alphameter regime data, strong risk-off performers include Silver (SLV), long-duration Treasury bonds (TLT), and the Nikkei 225 which benefits from contrarian capital rotation out of the US during periods of fear. Each asset's exact annualised return by regime is shown on its backtest card.

Which assets perform best in a risk-on market?

Strong risk-on performers include Oil (USO), Copper (CPER), and high-beta crypto assets like Solana and Bitcoin. These are growth and commodity assets that benefit most from confirmed risk appetite. Note that crypto assets have shorter data histories (5-8 years) compared to traditional assets.

Does Bitcoin perform better in risk-on or risk-off?

Bitcoin shows its highest annualised returns during risk-on periods, but with extreme variance. Bitcoin sits in the top 5 performers across all three Alphameter regimes — it rewards patient holders regardless of the macro state.

Disclaimer: Past performance does not guarantee future results. This backtest uses the Alphameter's regime classification applied retroactively to historical data. The regime thresholds were optimized over this same period, which introduces look-ahead bias. Real-world implementation would face additional costs including spreads, slippage, taxes, and transaction fees. This is educational content — not financial advice. Always do your own research before making investment decisions.