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STUDY

"Holdout seed-42 Breaker Unlock Test"

2026-08-12

Bundle: holdout_seed42_n20_y20 | SPY last 5y +85.4%

VariantTotalCAGRMaxDDPFTrades20222023-26Trades 23-26
V0 baseline mdd 0.35+145.1%+4.64%38.0%1.141,143-29.0%+0.0%0
V1 mdd 0.45+396.9%+8.46%39.3%1.241,527-24.5%+91.5%670
V2 unlock mdd 9.99+396.9%+8.46%39.3%1.241,527-24.5%+91.5%670
V3 dd_gate 0.25-23.2%-1.33%29.6%0.2829+0.0%+0.0%0

Verdict

BREAKER KILLED A LIVE EDGE: seed-42 went dark in 2023-26 purely from the 35% drawdown lock; with the breaker lifted, 2023-26 turns profitable (+91.5% vs SPY +85.4%, 670 trades). Deploying a resumable/lifted drawdown gate is warranted.