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Finaxion Research · AUD/USD

Which strategy works on AUD/USD?

On AUD/USD, 9 of 17 famous strategies beat buy-and-hold on daily bars; 1 of them hold out of sample.

Findings

On AUD/USD, 9 of 17 famous strategies beat buy-and-hold on daily bars; 1 of them hold out of sample. The best is Supertrend: the line that changes colour: +1.9 points a year over buying and holding AUD/USD. The worst is the Turtles: 55-day breakout: -1.7 points a year against buy-and-hold.

  1. On AUD/USD, 9 of 17 famous strategies beat buy-and-hold on daily bars; 1 of them hold out of sample.
  2. The best is Supertrend: the line that changes colour: +1.9 points a year over buying and holding AUD/USD.
  3. The worst is the Turtles: 55-day breakout: -1.7 points a year against buy-and-hold.

The 17 strategies, one by one

StrategyReturnBuy and holdExcess (pts/yr)Vs. S&P 500 (pts/yr)Out of sampleTrades
Supertrend: the line that changes colour36.1%-6.6%+1.9%-9.7%9
“Sell in May and go away”35.8%-6.6%+1.9%-9.7%holds40
Only invest above the 200-day average22.3%-6.6%+1.3%-10.2%overfit173
ICT / Smart Money: the fair value gap13.0%-6.6%+0.9%-10.6%overfit150
Ichimoku: buy above the cloud11.0%-6.6%+0.8%-10.7%overfit309
2-day RSI (the Connors rule)6.8%-6.6%+0.7%-10.9%overfit500
RSI 14: buy oversold (30/70)0.7%-6.6%+0.4%-11.2%overfit38
Bounce off the lower Bollinger band-1.3%-6.6%+0.3%-11.2%overfit180
The golden cross (50/200)-1.7%-6.6%+0.3%-11.3%overfit35
The MACD cross (12/26/9)-9.0%-6.6%-0.1%-11.7%overfit417
Upper Bollinger band breakout-9.6%-6.6%-0.2%-11.7%overfit292
Stochastic: oversold cross (14, 3)-11.2%-6.6%-0.3%-11.8%overfit294
Kaufman’s adaptive moving average (KAMA)-14.3%-6.6%-0.4%-11.9%overfit763
Heikin Ashi: follow the coloured candles-17.1%-6.6%-0.6%-12.1%overfit1425
ADX: trade only in strong trends-20.3%-6.6%-0.8%-12.3%overfit731
Parabolic SAR: follow the dots-27.7%-6.6%-1.2%-12.8%overfit497
The Turtles: 55-day breakout-33.8%-6.6%-1.7%-13.2%overfit70

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