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Finaxion Research · EG

Which strategy works on EG?

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

Findings

On EG, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is Stochastic: oversold cross (14, 3): -2.4 points a year over buying and holding EG. The worst is Heikin Ashi: follow the coloured candles: -17.6 points a year against buy-and-hold.

  1. On EG, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Stochastic: oversold cross (14, 3): -2.4 points a year over buying and holding EG.
  3. The worst is Heikin Ashi: follow the coloured candles: -17.6 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
Stochastic: oversold cross (14, 3)×16×31-2.4%-1.2%overfit460
RSI 14: buy oversold (30/70)×12×31-3.3%-2.2%overfit54
The golden cross (50/200)766.5%×31-4.5%-3.3%overfit41
“Sell in May and go away”320.2%×31-7.0%-5.8%overfit62
Supertrend: the line that changes colour305.6%×31-7.1%-5.9%overfit46
Wyckoff: buying the accumulation302.4%×31-7.1%-6.0%overfit175
2-day RSI (the Connors rule)231.0%×31-7.8%-6.6%overfit730
Bounce off the lower Bollinger band144.9%×31-8.8%-7.6%overfit260
Only invest above the 200-day average103.3%×31-9.4%-8.3%overfit291
Parabolic SAR: follow the dots7.6%×31-11.5%-10.3%overfit717
ICT / Smart Money: the order block-4.7%×31-11.9%-10.7%overfit20
The MACD cross (12/26/9)-4.7%×31-11.9%-10.8%overfit657
Smart Money: the liquidity sweep-13.5%×31-12.2%-11.1%overfit114
Kaufman’s adaptive moving average (KAMA)-18.0%×31-12.4%-11.2%overfit1125
ICT / Smart Money: the fair value gap-20.9%×31-12.5%-11.3%overfit274
The Turtles: 55-day breakout-48.8%×31-13.9%-12.7%overfit137
ADX: trade only in strong trends-53.0%×31-14.1%-13.0%overfit1039
Upper Bollinger band breakout-61.3%×31-14.8%-13.6%overfit512
Ichimoku: buy above the cloud-61.4%×31-14.8%-13.6%overfit503
Heikin Ashi: follow the coloured candles-84.8%×31-17.6%-16.5%overfit2013

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