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Finaxion Research · A

Which strategy works on A?

On A, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On A, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is "Sell in May and go away": +1.4 points a year over buying and holding A. The worst is Wyckoff: buying the accumulation: -10.7 points a year against buy-and-hold.

  1. On A, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is “Sell in May and go away”: +1.4 points a year over buying and holding A.
  3. The worst is Wyckoff: buying the accumulation: -10.7 points a year against buy-and-hold.

The 20 strategies, one by one

StrategyReturnBuy and holdExcess (pts/yr)Vs. S&P 500 (pts/yr)Out of sampleTrades
“Sell in May and go away”736.6%486.3%+1.4%-0.1%53
Ichimoku: buy above the cloud349.4%486.3%-1.0%-2.6%overfit307
The Turtles: 55-day breakout252.5%486.3%-2.0%-3.5%overfit105
Only invest above the 200-day average236.9%486.3%-2.2%-3.7%overfit199
Kaufman’s adaptive moving average (KAMA)211.6%486.3%-2.5%-4.0%partly925
The golden cross (50/200)191.2%486.3%-2.7%-4.3%overfit43
Parabolic SAR: follow the dots50.4%486.3%-5.3%-6.8%overfit591
2-day RSI (the Connors rule)41.3%486.3%-5.5%-7.1%overfit634
Bounce off the lower Bollinger band40.3%486.3%-5.5%-7.1%overfit210
Upper Bollinger band breakout36.1%486.3%-5.7%-7.2%overfit430
Heikin Ashi: follow the coloured candles20.0%486.3%-6.1%-7.7%overfit1803
ICT / Smart Money: the fair value gap8.8%486.3%-6.5%-8.1%overfit182
The MACD cross (12/26/9)7.8%486.3%-6.5%-8.1%overfit525
RSI 14: buy oversold (30/70)7.7%486.3%-6.5%-8.1%overfit44
ICT / Smart Money: the order block-4.6%486.3%-7.0%-8.6%8
ADX: trade only in strong trends-12.6%486.3%-7.3%-8.9%overfit863
Smart Money: the liquidity sweep-13.5%486.3%-7.4%-8.9%overfit108
Stochastic: oversold cross (14, 3)-30.7%486.3%-8.2%-9.7%overfit346
Supertrend: the line that changes colour-46.0%486.3%-9.1%-10.7%overfit53
Wyckoff: buying the accumulation-64.8%486.3%-10.7%-12.2%overfit152

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