AAPL (Apple Inc.) SMA(10)/SMA(200) crossover strategy - with 3.0x leverage via call options

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Backtesting Period

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Leverage

Leverage Type

Borrow Cost (%)

Time Decay (%) Learn more

When to Buy

Fast Moving Average Period

Slow Moving Average Type

Slow Moving Average Period

Confirmation Threshold (%)

When to Sell

Fast Moving Average Period

Slow Moving Average Type

Slow Moving Average Period

Confirmation Threshold (%)

Backtest a AAPL (Apple Inc.) crossover strategy: it buys when 10-day SMA crosses above 200-day SMA by 0.3% of the stock price, it sells when 10-day SMA falls below 200-day SMA by 0.3% of the stock price. Uses 3.0x leverage via call options with 3.0% annual time decay. Uninvested cash earns 4.0% risk-free interest.

Backtest Assumptions and Key Details

If the strategy involves regular stock positions, we use the adjusted close price for backtesting. This reflects total return by incorporating dividends.
If the strategy uses call options to simulate leveraged exposure, we instead use the close price (not adjusted), because dividends are not received when holding options.
When using call options, we simulate time decay in a simplified way. You can specify a time decay rate (e.g., 3%), which means that if the stock price stays flat for one year, the strategy loses 3% of the current stock price per share of exposure due to decay.
If leverage is applied via margin borrowing, we enforce a 25% maintenance margin requirement (as set by FINRA). This places a hard cap at 4x leverage, beyond which a margin call is immediate. In practice, 3x leverage is the more realistic limit, since the risk of a margin call increases sharply beyond that.
All trades are assumed to execute at the closing price on the day a signal occurs.
The backtest includes realistic cash flow effects, such as interest earned on idle cash and borrowing costs incurred when using margin.

Performance Overview

Portfolio Value Trend (Normalized)

1980-12-12 - $10,000.00 2025-07-05 - $0.00

Over 44.56 years, portfolio value grew from $10,000.00 to $0.00.

Beginning with an initial investment of $10,000.00 on 1980-12-12, the portfolio value reached a value of $0.00 by 2025-07-05. This represents a -100.00% total gain over 44.56 years, equivalent to -100.00% annualized. The return is negative, indicating the strategy or asset declined in value during the period. This could reflect poor timing, asset underperformance, or unfavorable market conditions.

Drawdown and Risk

The maximum drawdown recorded during this period was 100.00%. This drawdown began after a peak portfolio value of $32,033.72 on 1987-10-05, and reached its lowest point on 1997-10-20 when the portfolio value fell to $0.00. The drawdown lasted for 3668 days.

Maximum Drawdown

📈 1987-10-05 - $32,033.72 📉 1997-10-20 - $0.00

Max drawdown: 100.00% over 3668 days.

This investment experienced an extreme decline, reflecting exceptional volatility or exposure to severe market stress. Such drawdowns are typically seen in early-stage, speculative, or high-beta assets. The maximum drawdown lasted over three years — a very long decline that would have tested even the most patient investors. Such extended recoveries are rare but not impossible during major structural bear markets.

The Calmar Ratio — annualized return divided by maximum drawdown — was -1.00, reflecting the tradeoff between return and volatility. This ratio reflects negative or unstable performance — the strategy either lost value or experienced extreme drawdowns.

What the Strategy Suggests Today

The 10-day SMA is $204.54, and the 200-day SMA is $223.09, for a difference of $-18.55. The current stock price is $213.55, and 0.3% of that is $0.64. Since the difference is insufficient and does not exceed the threshold, the buy signal is not active.

The 10-day SMA is $204.54, and the 200-day SMA is $223.09, for a difference of $-18.55. The current stock price is $213.55, and 0.3% of that is $0.64. Since the difference is sufficient and exceeds the threshold, the sell signal is active.

If you have been following this strategy, you are currently in cash. No buy signal is active today. The strategy recommends waiting patiently in cash until a clear entry point emerges.

Transaction Timeline

We began our backtest on 1980-12-12 with $10,000.00 starting capital.

On 1980-12-30, the 10-day SMA at $0.14 crossed above the 200-day SMA at $0.13, exceeding it by 0.3% of the stock price ($0.16). We invested $10,019.35 — which includes $19.35 in interest earned while holding cash for 18 days — gaining exposure to 191,686.92 equivalent shares.

On 1981-02-03, the 10-day SMA at $0.14 fell below the 200-day SMA at $0.14 by 0.3% of the stock price ($0.12), triggering our exit. After holding the position for 35 days, we exited leaving $3,516.03 in available cash.

On 1981-05-01, the 10-day SMA at $0.13 crossed above the 200-day SMA at $0.12, exceeding it by 0.3% of the stock price ($0.13). We invested $3,549.03 — which includes $33.00 in interest earned while holding cash for 87 days — gaining exposure to 84,051.04 equivalent shares.

On 1981-05-13, the 10-day SMA at $0.12 fell below the 200-day SMA at $0.12 by 0.3% of the stock price ($0.12), triggering our exit. After holding the position for 12 days, we exited leaving $3,116.58 in available cash.

On 1981-05-22, the 10-day SMA at $0.13 crossed above the 200-day SMA at $0.12, exceeding it by 0.3% of the stock price ($0.14). We invested $3,119.59 — which includes $3.01 in interest earned while holding cash for 9 days — gaining exposure to 66,816.41 equivalent shares.

On 1981-07-02, the 10-day SMA at $0.13 fell below the 200-day SMA at $0.13 by 0.3% of the stock price ($0.11), triggering our exit. After holding the position for 41 days, we exited leaving $1,410.59 in available cash.

On 1982-09-01, the 10-day SMA at $0.07 crossed above the 200-day SMA at $0.07, exceeding it by 0.3% of the stock price ($0.08). We invested $1,476.62 — which includes $66.03 in interest earned while holding cash for 426 days — gaining exposure to 56,702.18 equivalent shares.

On 1983-07-28, the 10-day SMA at $0.18 fell below the 200-day SMA at $0.19 by 0.3% of the stock price ($0.15), triggering our exit. After holding the position for 330 days, we exited leaving $5,533.46 in available cash.

On 1984-04-26, the 10-day SMA at $0.12 crossed above the 200-day SMA at $0.12, exceeding it by 0.3% of the stock price ($0.13). We invested $5,698.08 — which includes $164.62 in interest earned while holding cash for 273 days — gaining exposure to 128,708.97 equivalent shares.

On 1984-09-12, the 10-day SMA at $0.12 fell below the 200-day SMA at $0.12 by 0.3% of the stock price ($0.12), triggering our exit. After holding the position for 139 days, we exited leaving $3,421.67 in available cash.

On 1984-09-19, the 10-day SMA at $0.12 crossed above the 200-day SMA at $0.12, exceeding it by 0.3% of the stock price ($0.12). We invested $3,424.24 — which includes $2.57 in interest earned while holding cash for 7 days — gaining exposure to 85,225.31 equivalent shares.

On 1984-09-27, the 10-day SMA at $0.12 fell below the 200-day SMA at $0.12 by 0.3% of the stock price ($0.11), triggering our exit. After holding the position for 8 days, we exited leaving $2,941.94 in available cash.

On 1984-12-26, the 10-day SMA at $0.12 crossed above the 200-day SMA at $0.12, exceeding it by 0.3% of the stock price ($0.12). We invested $2,970.51 — which includes $28.57 in interest earned while holding cash for 90 days — gaining exposure to 72,260.04 equivalent shares.

On 1985-02-28, the 10-day SMA at $0.12 fell below the 200-day SMA at $0.12 by 0.3% of the stock price ($0.11), triggering our exit. After holding the position for 64 days, we exited leaving $1,996.78 in available cash.

On 1985-11-14, the 10-day SMA at $0.09 crossed above the 200-day SMA at $0.09, exceeding it by 0.3% of the stock price ($0.09). We invested $2,053.09 — which includes $56.31 in interest earned while holding cash for 259 days — gaining exposure to 68,983.72 equivalent shares.

On 1987-10-27, the 10-day SMA at $0.35 fell below the 200-day SMA at $0.36 by 0.3% of the stock price ($0.27), triggering our exit. After holding the position for 712 days, we exited leaving $14,160.23 in available cash.

On 1988-01-04, the 10-day SMA at $0.38 crossed above the 200-day SMA at $0.37, exceeding it by 0.3% of the stock price ($0.40). We invested $14,265.53 — which includes $105.31 in interest earned while holding cash for 69 days — gaining exposure to 107,110.93 equivalent shares.

On 1988-01-21, the 10-day SMA at $0.37 fell below the 200-day SMA at $0.38 by 0.3% of the stock price ($0.36), triggering our exit. After holding the position for 17 days, we exited leaving $9,783.47 in available cash.

On 1988-03-03, the 10-day SMA at $0.38 crossed above the 200-day SMA at $0.38, exceeding it by 0.3% of the stock price ($0.42). We invested $9,827.69 — which includes $44.22 in interest earned while holding cash for 42 days — gaining exposure to 71,012.91 equivalent shares.

On 1988-03-29, the 10-day SMA at $0.38 fell below the 200-day SMA at $0.39 by 0.3% of the stock price ($0.37), triggering our exit. After holding the position for 26 days, we exited leaving $6,278.28 in available cash.

On 1988-06-10, the 10-day SMA at $0.38 crossed above the 200-day SMA at $0.38, exceeding it by 0.3% of the stock price ($0.40). We invested $6,327.69 — which includes $49.41 in interest earned while holding cash for 73 days — gaining exposure to 47,777.68 equivalent shares.

On 1988-08-25, the 10-day SMA at $0.37 fell below the 200-day SMA at $0.37 by 0.3% of the stock price ($0.36), triggering our exit. After holding the position for 76 days, we exited leaving $4,344.28 in available cash.

On 1988-09-26, the 10-day SMA at $0.38 crossed above the 200-day SMA at $0.38, exceeding it by 0.3% of the stock price ($0.38). We invested $4,359.24 — which includes $14.95 in interest earned while holding cash for 32 days — gaining exposure to 34,262.11 equivalent shares.

On 1988-10-07, the 10-day SMA at $0.38 fell below the 200-day SMA at $0.38 by 0.3% of the stock price ($0.35), triggering our exit. After holding the position for 11 days, we exited leaving $3,429.88 in available cash.

On 1989-01-10, the 10-day SMA at $0.37 crossed above the 200-day SMA at $0.37, exceeding it by 0.3% of the stock price ($0.38). We invested $3,465.05 — which includes $35.17 in interest earned while holding cash for 95 days — gaining exposure to 27,313.95 equivalent shares.

On 1989-01-27, the 10-day SMA at $0.37 fell below the 200-day SMA at $0.37 by 0.3% of the stock price ($0.34), triggering our exit. After holding the position for 17 days, we exited leaving $2,231.39 in available cash.

On 1989-04-26, the 10-day SMA at $0.36 crossed above the 200-day SMA at $0.35, exceeding it by 0.3% of the stock price ($0.35). We invested $2,252.81 — which includes $21.43 in interest earned while holding cash for 89 days — gaining exposure to 19,042.64 equivalent shares.

On 1989-07-26, the 10-day SMA at $0.36 fell below the 200-day SMA at $0.36 by 0.3% of the stock price ($0.34), triggering our exit. After holding the position for 91 days, we exited leaving $1,947.82 in available cash.

On 1989-08-07, the 10-day SMA at $0.36 crossed above the 200-day SMA at $0.36, exceeding it by 0.3% of the stock price ($0.39). We invested $1,950.33 — which includes $2.51 in interest earned while holding cash for 12 days — gaining exposure to 14,978.55 equivalent shares.

On 1989-12-13, the 10-day SMA at $0.37 fell below the 200-day SMA at $0.38 by 0.3% of the stock price ($0.32), triggering our exit. After holding the position for 128 days, we exited leaving $852.95 in available cash.

On 1990-03-28, the 10-day SMA at $0.37 crossed above the 200-day SMA at $0.36, exceeding it by 0.3% of the stock price ($0.37). We invested $862.62 — which includes $9.67 in interest earned while holding cash for 105 days — gaining exposure to 7,026.45 equivalent shares.

On 1990-04-30, the 10-day SMA at $0.36 fell below the 200-day SMA at $0.36 by 0.3% of the stock price ($0.35), triggering our exit. After holding the position for 33 days, we exited leaving $738.07 in available cash.

On 1990-05-14, the 10-day SMA at $0.37 crossed above the 200-day SMA at $0.36, exceeding it by 0.3% of the stock price ($0.37). We invested $739.18 — which includes $1.11 in interest earned while holding cash for 14 days — gaining exposure to 5,948.87 equivalent shares.

On 1990-06-08, the 10-day SMA at $0.36 fell below the 200-day SMA at $0.36 by 0.3% of the stock price ($0.34), triggering our exit. After holding the position for 25 days, we exited leaving $548.79 in available cash.

On 1990-06-27, the 10-day SMA at $0.36 crossed above the 200-day SMA at $0.36, exceeding it by 0.3% of the stock price ($0.37). We invested $549.91 — which includes $1.12 in interest earned while holding cash for 19 days — gaining exposure to 4,452.28 equivalent shares.

On 1990-08-17, the 10-day SMA at $0.35 fell below the 200-day SMA at $0.35 by 0.3% of the stock price ($0.33), triggering our exit. After holding the position for 51 days, we exited leaving $344.32 in available cash.

On 1990-12-06, the 10-day SMA at $0.34 crossed above the 200-day SMA at $0.34, exceeding it by 0.3% of the stock price ($0.37). We invested $348.45 — which includes $4.13 in interest earned while holding cash for 111 days — gaining exposure to 2,838.30 equivalent shares.

On 1991-05-31, the 10-day SMA at $0.41 fell below the 200-day SMA at $0.41 by 0.3% of the stock price ($0.42), triggering our exit. After holding the position for 176 days, we exited leaving $479.17 in available cash.

On 1991-06-04, the 10-day SMA at $0.42 crossed above the 200-day SMA at $0.42, exceeding it by 0.3% of the stock price ($0.44). We invested $479.38 — which includes $0.21 in interest earned while holding cash for 4 days — gaining exposure to 3,278.80 equivalent shares.

On 1991-06-12, the 10-day SMA at $0.42 fell below the 200-day SMA at $0.42 by 0.3% of the stock price ($0.38), triggering our exit. After holding the position for 8 days, we exited leaving $280.84 in available cash.

On 1991-08-14, the 10-day SMA at $0.45 crossed above the 200-day SMA at $0.45, exceeding it by 0.3% of the stock price ($0.49). We invested $282.75 — which includes $1.91 in interest earned while holding cash for 63 days — gaining exposure to 1,731.26 equivalent shares.

On 1991-09-13, the 10-day SMA at $0.46 fell below the 200-day SMA at $0.46 by 0.3% of the stock price ($0.43), triggering our exit. After holding the position for 30 days, we exited leaving $184.07 in available cash.

On 1991-12-30, the 10-day SMA at $0.47 crossed above the 200-day SMA at $0.46, exceeding it by 0.3% of the stock price ($0.51). We invested $186.22 — which includes $2.15 in interest earned while holding cash for 108 days — gaining exposure to 1,102.57 equivalent shares.

On 1992-06-09, the 10-day SMA at $0.50 fell below the 200-day SMA at $0.51 by 0.3% of the stock price ($0.48), triggering our exit. After holding the position for 162 days, we exited leaving $151.78 in available cash.

On 1992-11-11, the 10-day SMA at $0.48 crossed above the 200-day SMA at $0.48, exceeding it by 0.3% of the stock price ($0.51). We invested $154.33 — which includes $2.55 in interest earned while holding cash for 155 days — gaining exposure to 913.72 equivalent shares.

On 1993-04-06, the 10-day SMA at $0.46 fell below the 200-day SMA at $0.46 by 0.3% of the stock price ($0.44), triggering our exit. After holding the position for 146 days, we exited leaving $83.56 in available cash.

On 1993-05-10, the 10-day SMA at $0.47 crossed above the 200-day SMA at $0.47, exceeding it by 0.3% of the stock price ($0.49). We invested $83.86 — which includes $0.31 in interest earned while holding cash for 34 days — gaining exposure to 512.33 equivalent shares.

On 1993-06-10, the 10-day SMA at $0.47 fell below the 200-day SMA at $0.48 by 0.3% of the stock price ($0.40), triggering our exit. After holding the position for 31 days, we exited leaving $35.20 in available cash.

On 1994-02-09, the 10-day SMA at $0.31 crossed above the 200-day SMA at $0.30, exceeding it by 0.3% of the stock price ($0.32). We invested $36.14 — which includes $0.93 in interest earned while holding cash for 244 days — gaining exposure to 334.93 equivalent shares.

On 1994-04-22, the 10-day SMA at $0.27 fell below the 200-day SMA at $0.27 by 0.3% of the stock price ($0.27), triggering our exit. After holding the position for 72 days, we exited leaving $16.06 in available cash.

On 1994-05-05, the 10-day SMA at $0.28 crossed above the 200-day SMA at $0.27, exceeding it by 0.3% of the stock price ($0.29). We invested $16.09 — which includes $0.02 in interest earned while holding cash for 13 days — gaining exposure to 164.40 equivalent shares.

On 1994-05-19, the 10-day SMA at $0.27 fell below the 200-day SMA at $0.27 by 0.3% of the stock price ($0.29), triggering our exit. After holding the position for 14 days, we exited leaving $14.93 in available cash.

On 1994-08-03, the 10-day SMA at $0.28 crossed above the 200-day SMA at $0.28, exceeding it by 0.3% of the stock price ($0.30). We invested $15.05 — which includes $0.12 in interest earned while holding cash for 76 days — gaining exposure to 152.68 equivalent shares.

On 1995-03-23, the 10-day SMA at $0.33 fell below the 200-day SMA at $0.33 by 0.3% of the stock price ($0.33), triggering our exit. After holding the position for 232 days, we exited leaving $19.65 in available cash.

On 1995-04-24, the 10-day SMA at $0.34 crossed above the 200-day SMA at $0.34, exceeding it by 0.3% of the stock price ($0.35). We invested $19.72 — which includes $0.07 in interest earned while holding cash for 32 days — gaining exposure to 169.87 equivalent shares.

On 1995-09-19, the 10-day SMA at $0.37 fell below the 200-day SMA at $0.37 by 0.3% of the stock price ($0.33), triggering our exit. After holding the position for 148 days, we exited leaving $15.59 in available cash.

On 1996-10-22, the 10-day SMA at $0.22 crossed above the 200-day SMA at $0.22, exceeding it by 0.3% of the stock price ($0.22). We invested $16.27 — which includes $0.68 in interest earned while holding cash for 399 days — gaining exposure to 219.83 equivalent shares.

On 1996-11-01, the 10-day SMA at $0.22 fell below the 200-day SMA at $0.22 by 0.3% of the stock price ($0.22), triggering our exit. After holding the position for 10 days, we exited leaving $15.01 in available cash.

On 1996-11-08, the 10-day SMA at $0.22 crossed above the 200-day SMA at $0.22, exceeding it by 0.3% of the stock price ($0.23). We invested $15.02 — which includes $0.01 in interest earned while holding cash for 7 days — gaining exposure to 192.25 equivalent shares.

On 1996-12-19, the 10-day SMA at $0.21 fell below the 200-day SMA at $0.21 by 0.3% of the stock price ($0.20), triggering our exit. After holding the position for 41 days, we exited leaving $8.00 in available cash.

On 1997-08-07, the 10-day SMA at $0.18 crossed above the 200-day SMA at $0.17, exceeding it by 0.3% of the stock price ($0.26). We invested $8.20 — which includes $0.20 in interest earned while holding cash for 231 days — gaining exposure to 94.45 equivalent shares.

On 1997-10-30, the 10-day SMA at $0.16 fell below the 200-day SMA at $0.16 by 0.3% of the stock price ($0.15), triggering our exit. After holding the position for 84 days, we exited leaving $0.00 in available cash.

As of 2025-07-05, we have $0.00 in cash, which includes $0.00 in interest earned over 10110 days (since fully exiting to cash).