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Finaxion Research · DRI

Which strategy works on DRI?

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

Findings

On DRI, 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": -1.9 points a year over buying and holding DRI. The worst is Heikin Ashi: follow the coloured candles: -18.6 points a year against buy-and-hold.

  1. On DRI, 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”: -1.9 points a year over buying and holding DRI.
  3. The worst is Heikin Ashi: follow the coloured candles: -18.6 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”×42×71-1.9%+1.8%overfit62
The golden cross (50/200)784.0%×71-7.4%-3.6%partly45
RSI 14: buy oversold (30/70)609.2%×71-8.1%-4.4%overfit52
Stochastic: oversold cross (14, 3)594.4%×71-8.2%-4.5%overfit436
Wyckoff: buying the accumulation490.9%×71-8.7%-5.0%overfit171
2-day RSI (the Connors rule)406.2%×71-9.3%-5.5%overfit725
Supertrend: the line that changes colour372.4%×71-9.5%-5.8%partly49
Parabolic SAR: follow the dots189.1%×71-11.1%-7.4%overfit694
Only invest above the 200-day average112.6%×71-12.1%-8.4%overfit301
Bounce off the lower Bollinger band83.3%×71-12.6%-8.9%overfit258
Smart Money: the liquidity sweep44.1%×71-13.4%-9.7%overfit138
Ichimoku: buy above the cloud36.7%×71-13.6%-9.8%overfit473
The MACD cross (12/26/9)29.2%×71-13.8%-10.0%overfit674
ADX: trade only in strong trends17.4%×71-14.1%-10.3%overfit1066
ICT / Smart Money: the order block0.8%×71-14.6%-10.8%4
ICT / Smart Money: the fair value gap-3.9%×71-14.7%-11.0%overfit218
The Turtles: 55-day breakout-7.2%×71-14.8%-11.1%overfit135
Kaufman’s adaptive moving average (KAMA)-30.5%×71-15.7%-12.0%overfit1168
Upper Bollinger band breakout-69.9%×71-18.4%-14.6%overfit514
Heikin Ashi: follow the coloured candles-72.0%×71-18.6%-14.8%overfit2140

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