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Finaxion Research · DGX

Which strategy works on DGX?

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

Findings

On DGX, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is Wyckoff: buying the accumulation, at -3.0 points a year over buying and holding DGX. The worst is Upper Bollinger band breakout, at -20.1 points a year against buy-and-hold.

  1. On DGX, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Wyckoff: buying the accumulation: -3.0 points a year over buying and holding DGX.
  3. The worst is Upper Bollinger band breakout: -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
Wyckoff: buying the accumulation×44×97-3.0%+3.5%overfit162
“Sell in May and go away”×40×97-3.5%+3.1%59
Only invest above the 200-day average860.2%×97-8.7%-2.2%partly189
RSI 14: buy oversold (30/70)852.2%×97-8.8%-2.2%overfit52
The golden cross (50/200)517.9%×97-10.3%-3.8%overfit41
Stochastic: oversold cross (14, 3)513.6%×97-10.4%-3.8%overfit390
Supertrend: the line that changes colour459.4%×97-10.7%-4.1%overfit47
Ichimoku: buy above the cloud326.7%×97-11.6%-5.1%overfit367
The MACD cross (12/26/9)307.8%×97-11.8%-5.3%overfit550
Kaufman’s adaptive moving average (KAMA)204.1%×97-12.8%-6.3%overfit1029
Parabolic SAR: follow the dots148.3%×97-13.5%-7.0%overfit651
Bounce off the lower Bollinger band140.9%×97-13.7%-7.1%overfit232
The Turtles: 55-day breakout110.8%×97-14.1%-7.6%overfit129
ADX: trade only in strong trends22.1%×97-16.0%-9.4%overfit951
ICT / Smart Money: the fair value gap18.1%×97-16.1%-9.6%overfit244
2-day RSI (the Connors rule)2.0%×97-16.6%-10.1%overfit652
ICT / Smart Money: the order block-0.6%×97-16.7%-10.1%overfit18
Heikin Ashi: follow the coloured candles-20.9%×97-17.5%-10.9%overfit1951
Smart Money: the liquidity sweep-27.6%×97-17.7%-11.2%overfit90
Upper Bollinger band breakout-64.8%×97-20.1%-13.6%overfit502

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