# SPY 260-Day Strategy Ends Bull Market

> A 260-day moving average strategy for SPY reduces bull market drawdowns with 6.4% annual returns.
- Title: SPY 260-Day Strategy Ends Bull Market · Seekingalpha
- Summary: A 260-day moving average strategy for SPY reduces bull market drawdowns with 6.4% annual returns. Michael James McDonald's SPY 260-day strategy cuts bull…
- Keywords: spy, 260-day, bull market, drawdown, michael james mcdonald, sentiment king, money, business, Strategy, Ends, Bull, Market
- Source: Seekingalpha — https://seekingalpha.com/article/4959434-strategies-for-the-end-of-the-bull-market
- Author: Michael James McDonald
- Published: 2026-10-29T16:32:37+00:00
- Read time: 1 min
- Topics: spy, 260-day, bull market, drawdown, michael james mcdonald, sentiment king, money, business
## SPY 260-Day Strategy
This strategy uses a 260-day moving average to reduce drawdowns during bear markets or sideways markets.
## Backtesting Results
Back testing from 1999 to 2011 showed the strategy compounded at 6.4% annually versus SPY’s 1.9% with a max drawdown of 15% versus 55%.
## Current Position
The strategy is fully invested in SPY with an 8.6% cushion above the sell trigger.
## Historical Performance
Since SPY inception, the strategy matches buy-and-hold returns but trades off ~3% annual underperformance in persistent bull markets.
## Key takeaway

Michael James McDonald's SPY 260-day strategy cuts bull market drawdowns by 39% with 6.4% annual returns.