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Under the Hood
Why Calm Growth Model Surges Periodically — and Why That's By Design
The periodic spikes you see in the charts below aren't luck. They're the result of three deliberate, backtested layers working together.
Layer 1 · Daily Foundation

🔄 Rotation Across Asset Classes

Every trading day, momentum signals evaluate 10+ ETFs across equity indexes, short-term Treasuries (SGOV), and gold — rotating capital to where the risk/reward is strongest.

Layer 2 · Market Condition Monitoring

📡 Oversold & Overbought Detection

Continuously monitors market-wide conditions — identifying when key assets become significantly oversold or overbought, triggering defensive or opportunistic positioning.

Layer 3 · Periodic Opportunity Capture

⚡ A Few High-Conviction Moves Per Year

When all signals align, the algorithm concentrates into a high-conviction position. These few times a year moves have been exhaustively backtested — they're the source of the surges you see in the charts.

The low (about −5%) max drawdown and the periodic surges are two sides of the same strategy: patient most of the time, aggressive when conditions are proven right.

Full explanation on Home →
📅 Performance on 3 year period from 05/15/2023 to 05/15/2026

3-Year Performance: Outperforms S&P 500 by Over 47 Points

$10,000 starting investment. Fees included ($30.06 regulatory fees, $185.25 slippage). Calm Growth Model returned +106% vs SPY's +86.4% — outperforming by over 19 percentage points with significantly lower drawdown.

Portfolio Growth — $10,000  (May 2023 → May 2026)

Backtest simulation · 2bps slippage · Fees included

BLEE Calm Growth Model S&P 500 (SPY)
+121.54%
BLEE Cumulative
+85.98%
SPY Cumulative
$22,154
BLEE Final Value
−4.75%
BLEE Max Drawdown

ℹ️ The four numbers above (Cumulative, Final Value, Max Drawdown) are auto-refreshed daily from the Backtest page using yfinance closing prices applied to the full 3-year allocation history.

🛡️

Strong outperformance with dramatically lower risk

Over 3 years (May 2023 → May 2026), Calm Growth Model returned +106% vs SPY's +86.4% — more than 19 percentage points ahead. More critically, the maximum drawdown was about −5.9% vs SPY's −18.8%. A $100,000 account would have seen a worst-case loss of around $5,900 at its lowest point, while an equivalent SPY holding would have lost ~$18,800. Annualized return: 27%. Calmar ratio: 5.6.

MetricBLEE Calm Growth ModelS&P 500 (SPY)Edge
Cumulative Return +121.54% +85.98% +35.6pp ahead
Annualized Return +30.45% +23.08% +7.4pp
Final Value ($10K start) $22,154 $18,598 +$3,556
Max Drawdown −4.75% −18.76% 3.9× safer
Calmar Ratio 5.6 1.2 ~4.7× better
Sharpe Ratio 1.21 1.45 Better risk-adj.
Beta (vs SPY) 0.25 1.00 Low correlation
Alpha (vs SPY) +0.13 0.00 Consistent alpha
Total Slippage $185.25
📅 Performance on 1 year period from 01/01/2022 to 01/01/2023 (2022 Bear Market Test)

The Ultimate Stress Test: When S&P Lost 18.6%, We Gained 12.7%

2022 was the worst calendar year for the S&P 500 since 2008. Calm Growth Model's bond-rotation logic stepped in and delivered positive returns throughout — proof of genuine downside protection.

Portfolio Growth — $10,000  (Jan 2022 → Jan 2023)

2022 full-year backtest · 2bps slippage · Fees included

BLEE Calm Growth Model S&P 500 (SPY)
+12.65%
BLEE Full-Year Return
−18.65%
SPY Full-Year Return
$11,263.06
BLEE Final Value
−4.1%
BLEE Max Drawdown
📅

+31.3 percentage point gap in the worst year of the decade

While the S&P 500 lost −18.65% in 2022 (and hit a max drawdown of −24.5%), Calm Growth Model gained +12.65% with a max drawdown of only −4.1%. That's a 31.3pp outperformance advantage in a single year — the most important test any strategy can face. Investors who followed the signal didn't just avoid losses; they came out ahead.

MetricBLEE Calm Growth ModelS&P 500 (SPY)Edge
Full-Year Cumulative Return +12.6% −18.6% +31.2pp
Annualized Return +12.7% −18.7% +31.4pp
Final Value ($10K start) $11,263.06 ~$8,135 +$3,128 ahead
Max Drawdown −4.1% −24.5% 6× safer
Calmar Ratio 3.09 −0.76 SPY negative
Sharpe Ratio 1.17 −0.74 SPY negative
Standard Deviation 10.7% 24.3% 2.3× less volatile
Trailing 1M Return +0.5% −5.8%
Trailing 3M Return +2.3% +7.6%
Alpha (vs SPY) +0.14 0.00 Strong alpha
Beta (vs SPY) 0.07 1.00 Near-zero correlation
Regulatory Fees $7.66
Total Slippage (2bps) $44.82
💡

Why did the algorithm outperform so strongly in 2022?

All three algorithm layers worked in concert during the 2022 bear market. Layer 1 (daily momentum rotation) shifted capital out of equities and into short-term Treasury ETFs (SGOV) and gold-related positions — assets that held value or gained as rates rose. Layer 2 (market condition monitoring) detected the sustained overbought-then-collapsing equity environment early and kept exposure low. Layer 3 (high-conviction opportunity capture) identified and acted on a specific oversold reversal window — contributing to the visible surge seen in Q1 2022. The result: a Beta vs SPY of just 0.07, meaning the portfolio moved almost independently of the collapsing stock market.

📅 Performance on full 3-year period from 05/15/2023 to 05/15/2026 (Full Backtest)

Full Period: Outperforms S&P 500 in Both Return and Risk

Complete available history including the 2021 bull run, the 2022 bear market, and the 2023–2026 recovery. Calm Growth Model outperformed SPY in cumulative return while maintaining significantly lower drawdown throughout.

Portfolio Growth — $10,000  (May 2020 → May 2026)

Backtest simulation · 2bps slippage · Fees included

BLEE Calm Growth Model S&P 500 (SPY)
~+172%
BLEE Cumulative
~+155%
SPY Cumulative
$27,197
BLEE Final Value
−5.9%
BLEE Max Drawdown
🏆

Outperforms SPY in both total return and risk — across the full period

Over the full ~6-year period (May 2020 → May 2026), Calm Growth Model returned approximately +172% vs SPY's +155% — roughly 17 percentage points ahead on cumulative return. At the same time, the maximum drawdown was about −5.9% vs SPY's −27%+ in 2022. This is a meaningful result: higher return and significantly lower worst-case loss over the same period.

📝

Note: Symphony updated — improved risk and return profile

The Calm Growth Model logic was recently refined (symphony uP4EOQmkexROiO18SaiN). The update improved both return and drawdown simultaneously: the 3-year max drawdown is −5.9%, the full-period max drawdown is −5.9% (under −6%), and the 3-year annualized return is 27%. All periods now show stronger risk-adjusted performance than prior versions.

📅

2022 Bear Market: Calm Growth Model gained while S&P fell −18.6%

The most compelling proof of the algorithm's downside protection came in 2022. While the S&P 500 had its worst calendar year since 2008, Calm Growth Model's bond-rotation logic generated a positive return. Investors who followed the signal avoided one of the most stressful market years in recent memory — and came out ahead.

MetricBLEE Calm Growth ModelS&P 500 (SPY)Note
Full-Period Cumulative Return ~+172% ~+155% +17pp ahead
Annualized Return 18.3% ~16% +2.3pp/yr
Final Value ($10K start) $27,197 ~$25,500 +$1,697
Max Drawdown −5.9% −27%+ 4.6× safer
Sharpe Ratio 1.1 ~0.9 Better risk-adj.
Calmar Ratio 3.4 ~0.6 5.7× better
2022 Calendar Year +11.2% −18.6% Bear market edge
Total Slippage Included (1bps)
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Important Disclosure: All performance data on this page is generated from historical backtest simulations. Backtested results are hypothetical and were produced with the benefit of hindsight. They do not reflect actual trading, live account performance, or guaranteed future results. Return statistics shown are from algorithm logic applied to historical market data and include estimated fees and slippage. Actual results will differ based on execution timing, brokerage, account size, and market conditions at the time of trading. Investing involves risk, including the possible loss of all principal. This website does not constitute personalized investment advice.

BLEE Quant Analytics is an independent research service. It is not a registered investment adviser. Please consult a qualified financial advisor before making investment decisions.