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Finaxion Research · EEM

Which strategy works on EEM?

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

Findings

On EEM, 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": -3.0 points a year over buying and holding EEM. The worst is Heikin Ashi: follow the coloured candles: -12.9 points a year against buy-and-hold.

  1. On EEM, 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”: -3.0 points a year over buying and holding EEM.
  3. The worst is Heikin Ashi: follow the coloured candles: -12.9 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”390.0%830.9%-3.0%-4.6%47
Ichimoku: buy above the cloud330.3%830.9%-3.6%-5.2%overfit295
The golden cross (50/200)230.8%830.9%-4.8%-6.4%overfit35
The Turtles: 55-day breakout224.0%830.9%-4.9%-6.5%overfit96
Only invest above the 200-day average199.6%830.9%-5.2%-6.9%overfit211
2-day RSI (the Connors rule)189.3%830.9%-5.4%-7.0%overfit548
Stochastic: oversold cross (14, 3)125.2%830.9%-6.5%-8.1%overfit338
Supertrend: the line that changes colour106.3%830.9%-6.9%-8.5%overfit71
RSI 14: buy oversold (30/70)100.4%830.9%-7.0%-8.6%partly32
Wyckoff: buying the accumulation100.3%830.9%-7.0%-8.6%overfit98
The MACD cross (12/26/9)32.4%830.9%-8.8%-10.4%overfit477
Kaufman’s adaptive moving average (KAMA)31.5%830.9%-8.8%-10.5%overfit851
ADX: trade only in strong trends23.1%830.9%-9.1%-10.8%overfit859
Bounce off the lower Bollinger band23.0%830.9%-9.1%-10.8%overfit190
Parabolic SAR: follow the dots21.9%830.9%-9.2%-10.8%overfit511
ICT / Smart Money: the fair value gap7.0%830.9%-9.7%-11.4%overfit208
Upper Bollinger band breakout-2.7%830.9%-10.1%-11.8%overfit324
ICT / Smart Money: the order block-7.5%830.9%-10.3%-12.0%12
Smart Money: the liquidity sweep-32.2%830.9%-11.7%-13.3%overfit62
Heikin Ashi: follow the coloured candles-49.1%830.9%-12.9%-14.5%overfit1717

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