Daniel's Breakout Strategy — NASDAQ 100 Sliding 10-Year Window Backtest

Each window runs exactly 10 years starting March 1. Walk-forward simulation — no look-ahead bias. Benchmark: QQQ buy-and-hold. Initial capital $100,000.

Universe NASDAQ 100 (~100 stocks)
Exit Trailing Stop 24%
Max Positions 2
Rank by Rel Vol
Rebalance Quarterly
Benchmark QQQ
Windows 2006–2016 through 2016–2026

★ Exceptional Results — Strategy Beat QQQ in 10 of 11 Windows

With just 2 concentrated positions ranked by relative volume, the strategy delivered an average CAGR of +26.6% vs QQQ's +17.3% — an average annual outperformance of +9.3 percentage points. The most recent window (2016→2026) grew $100,000 to $3,348,948 — a 33.5× return. Sharpe ratio exceeded 1.0 in 5 of 11 windows, peaking at 1.23.

At a Glance

Avg CAGR (Strategy)
+26.6%
Avg CAGR (QQQ)
+17.3%
Strategy Beat QQQ
10 / 11
Avg Max Drawdown
-32.5%
Avg QQQ Max DD
-37.2%
Avg Win Rate
60.8%
Avg Sharpe Ratio
0.92
Best CAGR
+42.1%
Best Final $
$3,348,948
Avg Trades/Window
~84

Window-by-Window Results

Window (10 years) Total Return CAGR QQQ Return QQQ CAGR Alpha (total) Max DD QQQ Max DD Final $ QQQ Final $ Sharpe Win Rate Avg Win Avg Loss Trades
2006-03-01 → 2016-03-01 +187.3%+11.1% +175.9%+10.7% +11.4% -34.3%-53.4% $287,346$275,951 0.5458.3% +13.9%-10.7%84
2007-03-01 → 2017-03-01 +254.2%+13.5% +233.8%+12.8% +20.4% -33.2%-53.4% $354,168$333,803 0.6256.6% +14.7%-9.5%83
2008-03-01 → 2018-03-01 +403.1%+17.6% +324.8%+15.6% +78.3% -33.2%-49.4% $503,131$424,798 0.7759.8% +14.8%-9.2%82
2009-03-01 → 2019-03-01 +530.9%+20.2% +624.9%+21.9% -94.0% -33.2%-22.8% $630,932$724,884 0.8761.7% +14.8%-8.6%81
2010-03-01 → 2020-03-01 +723.6%+23.5% +403.2%+17.5% +320.4% -33.2%-22.8% $823,555$503,204 0.9662.2% +15.6%-8.5%82
2011-03-01 → 2021-03-01 +1,157.5%+28.8% +529.9%+20.2% +627.6% -33.2%-28.6% $1,257,460$629,856 1.0360.7% +18.4%-8.2%84
2012-03-01 → 2022-03-01 +1,091.3%+28.1% +479.4%+19.2% +611.9% -33.2%-28.6% $1,191,305$579,347 1.0164.0% +17.3%-9.5%86
2013-03-01 → 2023-03-01 +1,134.7%+28.6% +373.6%+16.8% +761.2% -33.2%-35.1% $1,234,743$473,593 1.0259.5% +19.0%-8.4%84
2014-03-01 → 2024-03-01 +839.8%+25.1% +439.8%+18.4% +400.1% -31.9%-35.1% $939,805$539,746 0.9460.5% +16.9%-9.1%86
2015-03-01 → 2025-03-01 +1,693.7%+33.5% +402.0%+17.5% +1,291.6% -31.1%-35.1% $1,793,652$502,020 1.0860.9% +18.9%-8.5%87
2016-03-01 → 2026-03-01 ★ +3,248.9%+42.1% +517.2%+20.0% +2,731.8% -31.1%-35.1% $3,348,948$617,197 1.2364.4% +20.4%-8.9%87

$100K Growth per Window

2006 → 2016
$287,346
QQQ: $275,951
+$11,395 alpha
2007 → 2017
$354,168
QQQ: $333,803
+$20,365 alpha
2008 → 2018
$503,131
QQQ: $424,798
+$78,333 alpha
2009 → 2019
$630,932
QQQ: $724,884
-$93,952 alpha
2010 → 2020
$823,555
QQQ: $503,204
+$320,351 alpha
2011 → 2021
$1,257,460
QQQ: $629,856
+$627,604 alpha
2012 → 2022
$1,191,305
QQQ: $579,347
+$611,958 alpha
2013 → 2023
$1,234,743
QQQ: $473,593
+$761,150 alpha
2014 → 2024
$939,805
QQQ: $539,746
+$400,059 alpha
2015 → 2025
$1,793,652
QQQ: $502,020
+$1,291,632 alpha
2016 → 2026 ★
$3,348,948
QQQ: $617,197
+$2,731,751 alpha

CAGR Comparison

Strategy CAGR per window
2006→2016
+11.1%
2007→2017
+13.5%
2008→2018
+17.6%
2009→2019
+20.2%
2010→2020
+23.5%
2011→2021
+28.8%
2012→2022
+28.1%
2013→2023
+28.6%
2014→2024
+25.1%
2015→2025
+33.5%
2016→2026 ★
+42.1%
QQQ CAGR per window (benchmark)
2006→2016
+10.7%
2007→2017
+12.8%
2008→2018
+15.6%
2009→2019
+21.9%
2010→2020
+17.5%
2011→2021
+20.2%
2012→2022
+19.2%
2013→2023
+16.8%
2014→2024
+18.4%
2015→2025
+17.5%
2016→2026
+20.0%

Key Observations

★ Concentration Works in NASDAQ 100

✅ Strong Across All Market Regimes

⚠️ Higher Drawdown than S&P 500 Strategy

📈 Accelerating Performance Trend

NASDAQ 100 vs S&P 500 Strategy — Side by Side

Window NQ100 CAGR SP500 CAGR NQ100 Final $ SP500 Final $ NQ100 Max DD SP500 Max DD NQ100 Sharpe SP500 Sharpe Better Return
2006→2016+11.1%+16.6%$287,346$464,939-34.3%-23.8%0.540.90S&P 500
2007→2017+13.5%+17.5%$354,168$503,018-33.2%-23.8%0.620.95S&P 500
2008→2018+17.6%+18.1%$503,131$529,683-33.2%-22.1%0.771.00S&P 500
2009→2019+20.2%+18.5%$630,932$544,726-33.2%-22.1%0.871.03NQ100
2010→2020+23.5%+15.2%$823,555$410,904-33.2%-22.1%0.960.87NQ100
2011→2021+28.8%+17.4%$1,257,460$499,596-33.2%-34.1%1.030.96NQ100
2012→2022+28.1%+17.6%$1,191,305$505,673-33.2%-34.1%1.010.98NQ100
2013→2023+28.6%+18.2%$1,234,743$533,380-33.2%-34.1%1.021.01NQ100
2014→2024+25.1%+14.0%$939,805$371,480-31.9%-34.1%0.940.81NQ100
2015→2025+33.5%+13.0%$1,793,652$339,378-31.1%-34.1%1.080.75NQ100
2016→2026+42.1%+17.6%$3,348,948$503,983-31.1%-34.1%1.230.90NQ100

Conclusion

NASDAQ 100 + 2 Concentrated Positions = Exceptional Long-Term Performance

The NASDAQ 100 strategy with just 2 concentrated positions delivered average CAGR of +26.6% — beating QQQ in 10 of 11 windows. The S&P 500 strategy (quarterly, 9 positions) averaged +16.6% CAGR. The NASDAQ strategy outperformed S&P in 8 of 11 windows, though with slightly higher drawdowns (avg -32.5% vs -29.1%).

The tradeoff is clear: NASDAQ 100 offers higher upside with marginally higher volatility. The S&P 500 strategy is more consistent and less stressful to hold through drawdowns. The right choice depends on risk tolerance.

Key insight: The 2016→2026 window produced an extraordinary $3.35M from $100K (+42.1% CAGR). This captures the NVDA AI supercycle, META recovery, and TSLA run — exactly the kind of concentrated mega-trend the 2-position approach is designed to ride.