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Finaxion Research · DLR

Which strategy works on DLR?

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

Findings

On DLR, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is "Sell in May and go away", at -6.1 points a year over buying and holding DLR, while the worst is Upper Bollinger band breakout, at -22.2 points a year against buy-and-hold.

  1. On DLR, 0 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”: -6.1 points a year over buying and holding DLR.
  3. The worst is Upper Bollinger band breakout: -22.2 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”×11×36-6.1%+0.6%overfit44
Supertrend: the line that changes colour583.5%×36-8.7%-2.0%overfit29
Stochastic: oversold cross (14, 3)516.1%×36-9.2%-2.5%partly303
2-day RSI (the Connors rule)475.1%×36-9.5%-2.8%overfit458
RSI 14: buy oversold (30/70)414.9%×36-10.1%-3.4%overfit38
Bounce off the lower Bollinger band327.4%×36-11.0%-4.3%overfit170
The golden cross (50/200)324.1%×36-11.0%-4.3%overfit37
Only invest above the 200-day average136.1%×36-13.9%-7.2%overfit185
Ichimoku: buy above the cloud135.8%×36-13.9%-7.2%overfit313
The Turtles: 55-day breakout63.3%×36-15.6%-8.9%overfit94
Wyckoff: buying the accumulation52.6%×36-15.9%-9.2%overfit115
Parabolic SAR: follow the dots44.6%×36-16.2%-9.5%overfit506
ICT / Smart Money: the fair value gap15.1%×36-17.2%-10.5%overfit156
ICT / Smart Money: the order block-2.2%×36-18.0%-11.3%6
The MACD cross (12/26/9)-13.6%×36-18.6%-11.8%overfit468
Smart Money: the liquidity sweep-18.6%×36-18.8%-12.1%overfit80
Kaufman’s adaptive moving average (KAMA)-18.8%×36-18.8%-12.1%overfit793
ADX: trade only in strong trends-19.5%×36-18.9%-12.2%overfit661
Heikin Ashi: follow the coloured candles-58.8%×36-21.9%-15.2%overfit1407
Upper Bollinger band breakout-61.6%×36-22.2%-15.5%overfit400

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