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Finaxion Research · EL

Which strategy works on EL?

On EL, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On EL, 1 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": +2.2 points a year over buying and holding EL. The worst is Heikin Ashi: follow the coloured candles: -16.1 points a year against buy-and-hold.

  1. On EL, 1 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”: +2.2 points a year over buying and holding EL.
  3. The worst is Heikin Ashi: follow the coloured candles: -16.1 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
“Sell in May and go away”×31×17+2.2%+1.2%61
Wyckoff: buying the accumulation×16×17-0.0%-1.0%overfit169
RSI 14: buy oversold (30/70)761.1%×17-2.3%-3.2%partly64
Stochastic: oversold cross (14, 3)345.8%×17-4.6%-5.5%partly422
The golden cross (50/200)272.9%×17-5.2%-6.1%overfit48
Only invest above the 200-day average202.5%×17-5.9%-6.8%overfit273
Parabolic SAR: follow the dots142.9%×17-6.6%-7.6%overfit659
Bounce off the lower Bollinger band113.8%×17-7.0%-8.0%overfit266
2-day RSI (the Connors rule)102.7%×17-7.2%-8.2%overfit730
Ichimoku: buy above the cloud74.4%×17-7.7%-8.7%overfit417
The Turtles: 55-day breakout73.1%×17-7.7%-8.7%overfit121
ICT / Smart Money: the fair value gap26.9%×17-8.8%-9.7%overfit242
Supertrend: the line that changes colour5.7%×17-9.4%-10.3%overfit63
ICT / Smart Money: the order block-2.1%×17-9.6%-10.6%14
Kaufman’s adaptive moving average (KAMA)-15.2%×17-10.1%-11.1%overfit1069
The MACD cross (12/26/9)-19.4%×17-10.2%-11.2%overfit625
Upper Bollinger band breakout-21.4%×17-10.3%-11.3%overfit510
ADX: trade only in strong trends-37.2%×17-11.0%-12.0%overfit1013
Smart Money: the liquidity sweep-40.6%×17-11.2%-12.2%overfit92
Heikin Ashi: follow the coloured candles-87.5%×17-16.1%-17.1%overfit2085

Finaxion is an analysis tool, not an investment adviser. This page is not a recommendation. Past performance does not guarantee future results. Prices and series: market data. Computations: Finaxion engine.