Exxon / Energy-Sector Intermarket
PairsBuys Exxon when the energy sector sells off sharply, betting on reversion.
What this strategy does
Exxon / Energy-Sector Intermarket is a pairs strategy that trades XOM vs XLE on 1-hour bars. Buys Exxon when the energy sector sells off sharply, betting on reversion.
How it performed
Backtested on real XOM vs XLE market data from 2023-07-01 to 2026-06-30 (3.0 years), this run returned +10.2%, or +3.3% annualized. It closed 71 trades with a 65% win rate. Risk-adjusted, that is a Sharpe ratio of 0.19, a Sortino ratio of 0.26 and a maximum drawdown of 20.8%.
| Symbol | XOM vs XLE |
|---|---|
| Bar size | 1-hour |
| Strategy type | Pairs |
| Backtest period | 2023-07-01 → 2026-06-30 |
| Total return | +10.2% |
| Annualized return | +3.3% |
| Sharpe ratio | 0.19 |
| Sortino ratio | 0.26 |
| Max drawdown | 20.8% |
| Win rate | 65% |
| Closed trades | 71 |
Evidence
Full backtest
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Strategy rules & configuration
Past performance does not guarantee future results. Hypothetical.