Layer 2: Hedged Bear Market (v 1.1)
Backtest results
Metrics
1Y · since Oct 2025Layer 2: Hedged Bear Market (v 1.1) | |
|---|---|
| Total Return | +12.79% |
| CAGR | +12.90% |
| Sharpe | 1.24 |
| Calmar | 3.31 |
| Max DD | -3.90% |
| Volatility | 10.25% |
| Win Rate | 55.8% |
Last year of a hypothetical backtest, Oct 30, 2025 to Oct 30, 2026. Create an account to see the full history.
About this strategy
Dynamic and defensive, the strategy mainly holds leveraged short-term bonds (BSV) and the dollar fund (UUP) when the S&P 500 is above its 200-day average or when Nasdaq is oversold. It switches to short Nasdaq (SQQQ) or short S&P (SPXS) when the market turns bearish, and falls back to gold (GLD) or Treasury bonds (SHY) when the index is below trend or the Nasdaq is overbought, protecting itself by sizing positions with inverse volatility.
Current allocation
What the rules select as of Oct 30, 2026.
Frequently asked questions
What is Layer 2: Hedged Bear Market (v 1.1)?
Dynamic and defensive, the strategy mainly holds leveraged short-term bonds (BSV) and the dollar fund (UUP) when the S&P 500 is above its 200-day average or when Nasdaq is oversold. It switches to short Nasdaq (SQQQ) or short S&P (SPXS) when the market turns bearish, and falls back to gold (GLD) or Treasury bonds (SHY) when the index is below trend or the Nasdaq is overbought, protecting itself by sizing positions with inverse volatility.
What is Layer 2: Hedged Bear Market (v 1.1) holding today?
As of Oct 30, 2026, Layer 2: Hedged Bear Market (v 1.1) allocates to UUP 81.8%, GLD 18.2%.
How has Layer 2: Hedged Bear Market (v 1.1) performed over the past year?
From Oct 30, 2025 to Oct 30, 2026, Layer 2: Hedged Bear Market (v 1.1) returned +13.1% in a hypothetical backtest. Past performance does not guarantee future results.
What is the maximum drawdown of Layer 2: Hedged Bear Market (v 1.1)?
From Oct 30, 2025 to Oct 30, 2026, the largest peak-to-trough decline of Layer 2: Hedged Bear Market (v 1.1) in a hypothetical backtest was -3.9%.
How do I use Layer 2: Hedged Bear Market (v 1.1)?
Open Layer 2: Hedged Bear Market (v 1.1) in Quantly to rerun the backtest, adjust the rules, and paper trade it. You can also connect a supported brokerage to trade your version live.
Backtest results are hypothetical and do not guarantee future returns. Strategies are shared by Quantly users for research only and are not investment advice.