Strategy Performance

Six strategy families, one engine

Gilito evaluates strategies across six core families daily. Each family captures a different source of return with distinct risk characteristics.

Strategy FamilyAvg ReturnWin RateMax DrawdownSharpe RatioBest Asset
Trend Following
+18.4%47%-12.3%1.42NVDA+34.2%
Mean Reversion
+14.7%64%-8.9%1.58JNJ+22.1%
Momentum
+21.3%52%-15.7%1.31META+41.8%
Factor-Based
+16.1%57%-10.4%1.47BRK.B+24.6%
Volatility
+12.8%59%-7.2%1.63SPY+19.4%
ML / Predictive
+19.6%55%-13.1%1.38AAPL+29.3%

Performance data based on backtested strategy results. Past performance does not guarantee future results.

Trend Following

Strategies that identify and ride directional price trends using moving averages, MACD, ADX, and channel breakouts. Market-direction agnostic — long in uptrends, cautious in downtrends.

Key Characteristics

  • Works across all timeframes
  • Higher win/loss ratio compensates for lower win rate
  • Benefits from volatility expansion
Best in:

Trending bull or bear markets

Weakest in:

Choppy, range-bound markets

Avg Return

+18.4%

Win Rate

47%

Max DD

-12.3%

Sharpe

1.42

Best Performing Asset

NVDA+34.2%

Mean Reversion

Strategies that exploit extreme price deviations returning to their statistical average. Uses RSI, Bollinger Bands, and z-score indicators to identify oversold/overbought conditions.

Key Characteristics

  • High win rate with smaller gains per trade
  • Excellent risk-adjusted returns
  • Works best with liquid, stable assets
Best in:

Range-bound, low-volatility markets

Weakest in:

Strong trending moves and breakouts

Avg Return

+14.7%

Win Rate

64%

Max DD

-8.9%

Sharpe

1.58

Best Performing Asset

JNJ+22.1%

Momentum

Strategies based on the documented tendency of recent outperformers to continue outperforming. Ranks assets by risk-adjusted momentum across multiple lookback windows.

Key Characteristics

  • Academically validated across decades
  • Strong performance in trending markets
  • Can capture outsized gains in winners
Best in:

Trending bull/bear cycles

Weakest in:

Sharp reversals and regime changes

Avg Return

+21.3%

Win Rate

52%

Max DD

-15.7%

Sharpe

1.31

Best Performing Asset

META+41.8%

Factor-Based

Strategies that tilt toward validated return factors — value, quality, momentum, and low volatility. Each factor captures a distinct source of excess return with a different risk profile.

Key Characteristics

  • Diversified alpha sources
  • Lower correlation to market beta
  • Robust across economic cycles
Best in:

Any (factor-dependent)

Weakest in:

Factor crash regimes (value traps, momentum reversals)

Avg Return

+16.1%

Win Rate

57%

Max DD

-10.4%

Sharpe

1.47

Best Performing Asset

BRK.B+24.6%

Volatility

Strategies that trade volatility regimes — buying when implied volatility is cheap and hedging when it spikes. Uses ATR, Bollinger Band width, and VIX-based signals.

Key Characteristics

  • Excellent risk management overlay
  • Highest Sharpe ratio among families
  • Works well as portfolio hedge
Best in:

Volatile markets with mean-reverting vol

Weakest in:

Sustained low-volatility environments

Avg Return

+12.8%

Win Rate

59%

Max DD

-7.2%

Sharpe

1.63

Best Performing Asset

SPY+19.4%

ML / Predictive

Machine learning strategies using random forests, gradient boosting, and ensemble methods to predict short-term price direction from multi-factor inputs.

Key Characteristics

  • Adapts to changing market conditions
  • Captures non-linear relationships
  • Combines multiple data sources
Best in:

Markets with stable statistical patterns

Weakest in:

Black swan events and regime breaks

Avg Return

+19.6%

Win Rate

55%

Max DD

-13.1%

Sharpe

1.38

Best Performing Asset

AAPL+29.3%

Disclaimer: All performance figures are based on backtested results and do not guarantee future performance. Investing involves risk. This is not financial advice.

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