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Cathay TAIEX Daily Leveraged 2X ETF backtest

10 trend-following strategies were compared on the full daily history of Cathay TAIEX Daily Leveraged 2X ETF. 8 beat buy-and-hold CAGR; Donchian 채널 돌파 ranks first by Sharpe, matching the main backtester. The return/drawdown alternative is Keltner 채널 돌파 (CAGR 16.4%, MDD -25.9%).

Data 2016-07-01 ~ 2026-07-31daily bars 2,456 (10.1 years)Costs 0.5%Venue TWSEMonthly snapshot 2026-07-31

Results by strategy

8 of 10 beat buy and hold (CAGR 16.6%, drawdown -90.7%).

Sharpe leader (same as main): Donchian 채널 돌파 — CAGR 36.9%, MDD -37.2%, Sharpe 1.18, 79% exposure.

Return/drawdown alternative: Keltner 채널 돌파 — CAGR is 20.2%p higher than buy and hold, while drawdown improves by 53.4%p (CAGR 16.4%, MDD -25.9%, exposure 35%).

The alternative must retain 75% of buy-and-hold CAGR, improve drawdown by at least 20% and 5 percentage points, and stay below 95% exposure; the ranking weights return retention 60% and drawdown improvement 40%.

Strategy · parametersCAGRMDDSharpeCalmarTotalTradesExposure
Donchian 채널 돌파
entryN=45, exitN=75
36.9%-37.2%1.180.9923.7x1179%
SMA 크로스오버
fast=38, slow=63
32.2%-37.8%1.110.8516.6x3769%
ROC 모멘텀
n=86, threshold=-0.04
32.6%-37.6%1.100.8717.2x3976%
MACD
fast=11, slow=22, signal=11
21.8%-33.6%1.050.657.3x18453%
EMA 크로스오버
fast=39, slow=44
30.0%-37.2%1.040.8114.1x2173%
ADX / DI 방향성
period=27, threshold=11
21.0%-31.3%0.980.676.8x9250%
Keltner 채널 돌파
emaPeriod=32, atrPeriod=13, mult=3.4
16.4%-25.9%0.910.634.6x4835%
볼린저 밴드 돌파
n=38, k=1.3
18.9%-41.5%0.880.465.7x7653%
Parabolic SAR
step=0.015, maxStep=0.32
17.1%-32.1%0.810.534.9x17859%
Supertrend
period=27, mult=5
5.9%-88.0%0.550.071.8x4268%
Buy and hold16.6%-90.7%0.740.184.7x1100%
1x 10x 2017 2019 2021 2023 2025 Donchian 채널 돌파Buy and hold
Donchian 채널 돌파: Solid strategy line versus dashed buy-and-hold line. Log scale.
0% -23% -45% -68% -91% 2017 2019 2021 2023 2025 Buy and holdDonchian 채널 돌파
Donchian 채널 돌파 maximum drawdown -37.2% (2024-07-11 → 2024-08-05), recovered after 462 days.

Rules of the top strategy

A new high means a trend starting; a new low means it’s over (turtle-trading style).

Method and caveats

Past performance does not guarantee future returns. Parameters were selected on the same full-history sample using sharpe over 40 trials per strategy, so results contain in-sample bias. 0.5% trading costs are included; taxes, slippage and rejected orders are not.
Re-run the same setupAll asset reports

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