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Finaxion Research · CB

Which strategy works on CB?

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

Findings

On CB, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is the golden cross (50/200), at -5.3 points a year over buying and holding CB, while the worst is Upper Bollinger band breakout, at -15.8 points a year against buy-and-hold.

  1. On CB, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is the golden cross (50/200): -5.3 points a year over buying and holding CB.
  3. The worst is Upper Bollinger band breakout: -15.8 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
The golden cross (50/200)×13×67-5.3%-2.7%overfit37
Stochastic: oversold cross (14, 3)×13×67-5.3%-2.7%partly497
Only invest above the 200-day average841.1%×67-6.5%-3.9%overfit239
RSI 14: buy oversold (30/70)797.2%×67-6.6%-4.0%overfit54
“Sell in May and go away”707.3%×67-6.9%-4.3%overfit67
Wyckoff: buying the accumulation531.8%×67-7.7%-5.1%partly208
Bounce off the lower Bollinger band300.3%×67-9.2%-6.6%overfit278
Parabolic SAR: follow the dots260.5%×67-9.5%-6.9%overfit766
The MACD cross (12/26/9)172.9%×67-10.3%-7.8%overfit712
Supertrend: the line that changes colour128.2%×67-10.9%-8.3%overfit73
Ichimoku: buy above the cloud81.4%×67-11.6%-9.0%overfit504
Kaufman’s adaptive moving average (KAMA)61.8%×67-11.9%-9.3%overfit1244
The Turtles: 55-day breakout57.4%×67-12.0%-9.4%overfit148
2-day RSI (the Connors rule)44.7%×67-12.3%-9.7%overfit766
Smart Money: the liquidity sweep-2.0%×67-13.5%-10.9%overfit150
ICT / Smart Money: the order block-4.7%×67-13.5%-10.9%overfit30
ICT / Smart Money: the fair value gap-28.6%×67-14.4%-11.8%overfit280
ADX: trade only in strong trends-36.8%×67-14.8%-12.2%overfit1140
Heikin Ashi: follow the coloured candles-42.8%×67-15.1%-12.5%overfit2214
Upper Bollinger band breakout-55.5%×67-15.8%-13.2%overfit534

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