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Finaxion Research · ERIE

Which strategy works on ERIE?

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

Findings

On ERIE, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is Parabolic SAR: follow the dots: -4.4 points a year over buying and holding ERIE. The worst is 2-day RSI (the Connors rule): -13.4 points a year against buy-and-hold.

  1. On ERIE, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Parabolic SAR: follow the dots: -4.4 points a year over buying and holding ERIE.
  3. The worst is 2-day RSI (the Connors rule): -13.4 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
Parabolic SAR: follow the dots893.8%×35-4.4%-2.9%overfit686
The Turtles: 55-day breakout631.9%×35-5.5%-3.9%overfit117
The golden cross (50/200)452.3%×35-6.5%-4.9%overfit38
Supertrend: the line that changes colour443.8%×35-6.5%-5.0%overfit46
“Sell in May and go away”338.0%×35-7.3%-5.7%overfit62
RSI 14: buy oversold (30/70)301.8%×35-7.5%-6.0%overfit46
The MACD cross (12/26/9)238.3%×35-8.1%-6.6%overfit634
ADX: trade only in strong trends209.7%×35-8.4%-6.9%partly954
Ichimoku: buy above the cloud190.0%×35-8.6%-7.1%overfit443
Stochastic: oversold cross (14, 3)91.4%×35-10.0%-8.5%overfit398
Only invest above the 200-day average88.7%×35-10.1%-8.5%overfit297
Kaufman’s adaptive moving average (KAMA)66.6%×35-10.5%-8.9%overfit1193
Wyckoff: buying the accumulation63.7%×35-10.5%-9.0%overfit174
ICT / Smart Money: the fair value gap6.6%×35-11.9%-10.4%overfit136
Bounce off the lower Bollinger band1.6%×35-12.1%-10.5%overfit278
ICT / Smart Money: the order block-2.5%×35-12.2%-10.7%overfit18
Heikin Ashi: follow the coloured candles-7.4%×35-12.4%-10.8%overfit2166
Upper Bollinger band breakout-16.3%×35-12.7%-11.2%overfit500
Smart Money: the liquidity sweep-28.3%×35-13.2%-11.7%overfit144
2-day RSI (the Connors rule)-31.1%×35-13.4%-11.8%overfit648

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