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REJECTED

"Sector Rotation (top-100 PIT universe, 11 GICS sectors)"

2026-08-26

Window: 2006-08-14 .. 2026-08-12 (5027 days) | universe: top-100 as of 2007-06-01 | sectors: 11 GICS | signal: median SMA200 distance per sector | gross returns

VariantRetSharpeMaxDDPF
SPY buy-and-hold+499.09%0.67-56.47%1.12
all-sector EW+285.77%0.56-61.81%1.10
top-2 sectors+366.97%0.55-68.06%1.09
top-3 sectors+382.44%0.59-67.48%1.09
top-5 sectors+441.80%0.66-61.39%1.11

IS/OOS split at 2016-01-01

| Variant | Segment | Ret | Sharpe | MaxDD | PF | |---|---|---|---|---|---|---| | top-3 | IS SPY | +60.39% | 0.41 | -56.47% | 1.07 | | top-3 | IS top-3sec | +8.40% | 0.19 | -67.48% | 1.03 | | top-3 | OOS SPY | +273.53% | 0.95 | -34.10% | 1.16 | | top-3 | OOS top-3sec | +345.06% | 0.97 | -32.63% | 1.15 |

OOS significance

top-3sec vs SPY: OOS dret +19.25%, bootstrap p=0.351

Per-decade: SPY vs all-sector EW vs top-3 sectors

DecadeSPYAll-sectorTop-3
2006s+60.4%+22.6%+8.4%
2016s+234.5%+161.1%+242.2%
2026s+11.7%+20.5%+30.1%

Decision memo

Sector rotation within a PIT universe. Tests whether sector-level momentum adds value beyond equal-weight.