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Finaxion Research · DVA

Which strategy works on DVA?

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

Findings

On DVA, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is Only invest above the 200-day average: -4.1 points a year over buying and holding DVA. The worst is 2-day RSI (the Connors rule): -18.1 points a year against buy-and-hold.

  1. On DVA, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Only invest above the 200-day average: -4.1 points a year over buying and holding DVA.
  3. The worst is 2-day RSI (the Connors rule): -18.1 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
Only invest above the 200-day average×14×43-4.1%-1.7%205
“Sell in May and go away”×13×43-4.4%-2.0%62
The golden cross (50/200)766.7%×43-5.7%-3.3%overfit47
Stochastic: oversold cross (14, 3)681.0%×43-6.1%-3.7%overfit435
Wyckoff: buying the accumulation357.7%×43-7.9%-5.5%overfit191
Parabolic SAR: follow the dots353.7%×43-8.0%-5.6%overfit628
Ichimoku: buy above the cloud288.2%×43-8.5%-6.1%overfit414
The Turtles: 55-day breakout260.6%×43-8.7%-6.4%overfit120
RSI 14: buy oversold (30/70)248.7%×43-8.9%-6.5%overfit61
ADX: trade only in strong trends124.3%×43-10.3%-8.0%overfit966
The MACD cross (12/26/9)99.9%×43-10.7%-8.3%overfit599
Kaufman’s adaptive moving average (KAMA)83.2%×43-11.0%-8.6%overfit1120
Bounce off the lower Bollinger band79.7%×43-11.1%-8.7%overfit253
Heikin Ashi: follow the coloured candles22.2%×43-12.3%-10.0%overfit2053
Supertrend: the line that changes colour19.6%×43-12.4%-10.0%overfit70
ICT / Smart Money: the order block4.7%×43-12.8%-10.5%overfit24
Upper Bollinger band breakout-2.2%×43-13.1%-10.7%overfit494
Smart Money: the liquidity sweep-24.8%×43-13.9%-11.5%overfit78
ICT / Smart Money: the fair value gap-51.0%×43-15.3%-12.9%overfit278
2-day RSI (the Connors rule)-80.1%×43-18.1%-15.7%overfit716

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