FINAXIONResearch
Finaxion Research · ADX: trade only in strong trends · single stocks · Recomputed 2026-09-10

Does ADX: trade only in strong trends work on BXP?

ADX: trade only in strong trends does not beat buy-and-hold on BXP: -12.1 points a year over 29 years.

Total return
-69.1%
Buy and hold
888.9%
CAGR
-4.0%
Sharpe
-0.28
Max drawdown
-93.7%
Trades
915
Out of sample
overfit
Years
29
1×10×15×1998200120042007201020132016201920222025
StrategyBXP

Findings

  1. ADX: trade only in strong trends does not beat buy-and-hold on BXP: -12.1 points a year over 29 years.
  2. Against the S&P 500 over the same window: -13.5 points a year.
  3. Total return -69.1% versus +888.9% for buy-and-hold, with 915 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -93.7%.
  6. It beats in neither half of the history (split at 2012).
  7. It ranks #203 of 235 markets for this strategy by annual excess over the S&P 500.

Findings derived from the full panel. Each carries its number and its denominator; the computations are reproducible with artifact 5bea546c394a.

Exactly what was tested

Long while +DI(14) is above −DI(14); flat when −DI overtakes +DI. Next-close execution.

How to read it

The verdict compares the strategy with buying and holding BXP over the same window, with round-trip costs per asset class. “Out of sample” is walk-forward: the rule is fit on one stretch and judged on the next. A result that beats in the full sample but not out of it is overfit. Full methodology in the protocol. How we test.

Open this backtest with its trades   Trades (CSV)

Every strategy on BXP → · Full page for ADX: trade only in strong trends →

How to cite

Finaxion Research (2026). Does ADX: trade only in strong trends work on BXP?. Daily backtest 1962-01-01–2026-08-31, artifact 5bea546c394a. https://finaxion.app/en/research/adx-trend-filter/bxp

Not a recommendation. Past performance does not guarantee future results.