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Finaxion Research · DPZ

Which strategy works on DPZ?

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

Findings

On DPZ, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is "Sell in May and go away": -3.1 points a year over buying and holding DPZ. The worst is Heikin Ashi: follow the coloured candles: -24.7 points a year against buy-and-hold.

  1. On DPZ, 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”: -3.1 points a year over buying and holding DPZ.
  3. The worst is Heikin Ashi: follow the coloured candles: -24.7 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”×32×57-3.1%+5.9%overfit44
Only invest above the 200-day average×27×57-4.0%+5.0%partly114
The golden cross (50/200)×18×57-6.2%+2.7%partly26
Ichimoku: buy above the cloud×15×57-7.0%+2.0%overfit225
2-day RSI (the Connors rule)594.0%×57-10.9%-1.9%partly533
Supertrend: the line that changes colour555.8%×57-11.2%-2.2%overfit36
The Turtles: 55-day breakout428.1%×57-12.3%-3.3%overfit87
The MACD cross (12/26/9)378.8%×57-12.7%-3.8%overfit442
Stochastic: oversold cross (14, 3)322.3%×57-13.3%-4.4%overfit297
Wyckoff: buying the accumulation319.9%×57-13.4%-4.4%overfit144
RSI 14: buy oversold (30/70)303.7%×57-13.6%-4.6%overfit40
Parabolic SAR: follow the dots299.4%×57-13.6%-4.6%overfit475
ADX: trade only in strong trends246.1%×57-14.3%-5.3%overfit682
Kaufman’s adaptive moving average (KAMA)77.9%×57-17.4%-8.5%overfit780
Upper Bollinger band breakout-3.1%×57-20.2%-11.2%overfit378
ICT / Smart Money: the order block-5.9%×57-20.4%-11.4%10
Bounce off the lower Bollinger band-6.6%×57-20.4%-11.4%overfit166
Smart Money: the liquidity sweep-33.6%×57-21.9%-12.9%overfit76
ICT / Smart Money: the fair value gap-34.1%×57-22.0%-13.0%overfit188
Heikin Ashi: follow the coloured candles-65.1%×57-24.7%-15.8%overfit1458

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