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Finaxion Research · CME

Which strategy works on CME?

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

Findings

On CME, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is Supertrend: the line that changes colour: -4.8 points a year over buying and holding CME. The worst is Smart Money: the liquidity sweep: -20.1 points a year against buy-and-hold.

  1. On CME, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Supertrend: the line that changes colour: -4.8 points a year over buying and holding CME.
  3. The worst is Smart Money: the liquidity sweep: -20.1 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
Supertrend: the line that changes colour×26×70-4.8%+3.4%overfit30
Only invest above the 200-day average×17×70-7.0%+1.3%partly141
The golden cross (50/200)×16×70-7.3%+1.0%overfit28
Ichimoku: buy above the cloud777.9%×70-10.0%-1.8%partly321
Stochastic: oversold cross (14, 3)758.3%×70-10.1%-1.9%overfit334
The Turtles: 55-day breakout722.1%×70-10.3%-2.1%overfit93
Wyckoff: buying the accumulation644.4%×70-10.8%-2.5%overfit140
“Sell in May and go away”599.0%×70-11.1%-2.8%overfit47
The MACD cross (12/26/9)426.7%×70-12.3%-4.1%overfit475
Bounce off the lower Bollinger band291.4%×70-13.7%-5.4%overfit180
Kaufman’s adaptive moving average (KAMA)239.9%×70-14.3%-6.1%overfit857
ADX: trade only in strong trends188.7%×70-15.0%-6.8%overfit761
Parabolic SAR: follow the dots50.4%×70-17.9%-9.6%overfit553
RSI 14: buy oversold (30/70)46.1%×70-18.0%-9.8%overfit31
ICT / Smart Money: the fair value gap20.0%×70-18.8%-10.6%overfit188
2-day RSI (the Connors rule)14.6%×70-19.0%-10.8%overfit562
Upper Bollinger band breakout4.8%×70-19.4%-11.2%overfit376
Heikin Ashi: follow the coloured candles0.3%×70-19.6%-11.3%overfit1531
ICT / Smart Money: the order block-0.4%×70-19.6%-11.4%8
Smart Money: the liquidity sweep-10.7%×70-20.1%-11.8%overfit76

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