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SPOT

Spotify Technology S.A.
TREND FOLLOWING PERFORMANCE HISTORY
2026-09-09
Executive Summary
The quantitative backtest for SPOT (Spotify Technology S.A.) using the Moving Average (50/200)* strategy in a Investing context demonstrated its primary role in risk mitigation, experiencing a maximum drawdown of -33.1% (compared to the benchmark's drawdown of -80.5%). Over the evaluated period, this protective approach generated a Compound Annual Growth Rate (CAGR) of 29.5%, compared to a Buy-and-Hold benchmark return of 18.1%. The strategy executed 13 total trades.

* Moving Average (50/200): Classic Moving Average Crossover (e.g., 50-day crossing 200-day). The foundational basis of research-grade trend following.

🛡️ SPOT Drawdown Shield & Downside Protection

Why Drawdown Dictates Longevity →
Peak Drawdown Defense
-33.1% (vs -80.5% B&H)
+47.4% shallower drawdown
Downside Efficiency
0.83 Sortino
+0.36 vs 0.47 B&H
Capital Sheltered from Risk
46.1% of Time
Earning Treasury yield during downturns
* Drawdown Shield demonstrates how systematic trend-following bounded historical drawdowns and protected principal capital compared to passive Buy & Hold.

📊 SPOT Quality Metrics & KPI Summary

Metric 1Y5YFull
StrategyB&HStrategyB&HStrategyB&H
Max Drawdown-20.75%-44.11%-33.11%-76.39%-33.11%-80.51%
Sharpe Ratio-1.46-0.721.110.320.820.34
Sortino Ratio-0.86-1.041.090.430.830.47
CAGR-16.33%-27.29%35.29%16.28%29.48%18.10%
% Time Invested17.9%100.0%51.5%100.0%53.9%100.0%
Trades / Year1.00.01.40.02.10.0

Cumulative Growth Performance

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Hydrating Performance Trajectory... Loading historical performance data
Figure 1: Cumulative Trajectory Analysis. Logarithmic growth comparison of SPOT under the Moving Average (50/200) strategy (Investing) versus Buy & Hold. The strategy produced a 29.5% CAGR with a -33.1% Max Drawdown across 13 trade signals (compared to Buy & Hold's 18.1% CAGR and -80.5% Max Drawdown).

Return Distribution Analysis

Histogram of monthly return distribution for SPOT under Moving Average (50/200) strategy in Investing context, illustrating downside risk mitigation and return skewness.
Figure 2: Monthly Return Distribution Profile. Monthly return distribution for SPOT under Moving Average (50/200) (Investing). Visualizes return frequency, volatility clustering, and tail-risk truncation relative to standard buy-and-hold returns.
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Top 5 non-correlated asset sleeves evaluated on 1Y daily percentage returns (Pearson r). Compare them side-by-side in Compare Studio to analyze portfolio diversification.

Diversifier Asset Category 1Y Correlation (r) Action
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Trade History

This log shows every signal-driven transition. Completed trades reflect standard market cycles. An Open or Mark-to-Market exit denotes an active position (either in the primary asset or a cash/yield sleeve) valued at the current price for reporting purposes. Interest entries record yield accrued from cash or cash alternatives (like BIL) during out-of-market defensive periods.

Entry DateExit DateTypeAllocationEntry PriceExit PriceNet Return %Exit Reason
🔒 Active Positions & Recent Execution Signals Hidden
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2025-11-28 2025-12-04 Completed 100% $596.62 $557.22 -6.65% Signal
2025-11-05 2025-11-28 Interest (CASH) 100% $1.00 $1.00 0.25% Interest Income
2025-08-21 2025-11-05 Completed 100% $703.79 $626.00 -11.10% Stop
2025-07-30 2025-08-21 Interest (CASH) 100% $1.00 $1.00 0.27% Interest Income
2025-05-01 2025-07-30 Completed 100% $606.10 $623.00 2.74% Stop
2025-04-08 2025-05-01 Interest (CASH) 100% $1.00 $1.00 0.27% Interest Income
2025-03-31 2025-04-08 Completed 100% $545.00 $558.00 2.33% Stop
2025-03-07 2025-03-31 Interest (CASH) 100% $1.00 $1.00 0.27% Interest Income
2023-08-17 2025-03-07 Completed 100% $134.35 $540.52 302.12% Stop
2023-07-26 2023-08-17 Interest (CASH) 100% $1.00 $1.00 0.34% Interest Income
2023-02-24 2023-07-26 Completed 100% $116.44 $141.69 21.62% Stop
2022-01-14 2023-02-24 Interest (CASH) 100% $1.00 $1.03 2.75% Interest Income
2021-12-02 2022-01-14 Completed 100% $225.00 $223.91 -0.53% Signal
2021-07-29 2021-12-02 Interest (CASH) 100% $1.00 $1.00 0.02% Interest Income
2021-06-01 2021-07-29 Completed 100% $243.50 $225.31 -7.52% Stop
2021-05-03 2021-06-01 Interest (CASH) 100% $1.00 $1.00 0.00% Interest Income
2021-03-22 2021-05-03 Completed 100% $276.00 $255.42 -7.50% Stop
2021-02-26 2021-03-22 Interest (CASH) 100% $1.00 $1.00 0.00% Interest Income
2020-11-24 2021-02-26 Completed 100% $267.91 $300.00 11.92% Stop
2020-11-02 2020-11-24 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income
2020-09-30 2020-11-02 Completed 100% $244.00 $240.01 -1.68% Stop
2020-09-08 2020-09-30 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income
2020-08-28 2020-09-08 Completed 100% $276.10 $240.66 -12.88% Stop
2020-08-06 2020-08-28 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income
2020-06-17 2020-08-06 Completed 100% $187.00 $252.53 34.98% Stop
2020-06-15 2020-06-17 Interest (CASH) 100% $1.00 $1.00 0.00% Interest Income

Next Steps: Portfolio Integration & Comparative Analysis

Single-ticker trend following is designed to truncate tail risk inside a broader portfolio. View where SPOT ranks across 40+ tracked assets, evaluate correlation against non-correlated diversifiers, or model it inside a custom all-weather asset mix.

📊 View Full 40-Asset Backtest Matrix → 🛠️ Build Custom Portfolio with SPOT → ⚖️ Compare SPOT vs Non-Correlated Assets →