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Finaxion Research · ESS

Which strategy works on ESS?

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

Findings

On ESS, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is the golden cross (50/200) at -3.2 points a year over buying and holding ESS, while the worst is Heikin Ashi: follow the coloured candles at -15.8 points a year against buy-and-hold.

  1. On ESS, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is the golden cross (50/200): -3.2 points a year over buying and holding ESS.
  3. The worst is Heikin Ashi: follow the coloured candles: -15.8 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
The golden cross (50/200)×21×54-3.2%-1.1%overfit49
Only invest above the 200-day average×14×54-4.6%-2.5%overfit245
Wyckoff: buying the accumulation949.4%×54-5.6%-3.5%overfit183
Supertrend: the line that changes colour860.9%×54-5.9%-3.8%overfit38
RSI 14: buy oversold (30/70)631.8%×54-6.8%-4.7%56
Stochastic: oversold cross (14, 3)581.5%×54-7.0%-4.9%452
“Sell in May and go away”575.5%×54-7.0%-5.0%overfit64
Parabolic SAR: follow the dots413.1%×54-7.9%-5.9%overfit724
Bounce off the lower Bollinger band223.3%×54-9.4%-7.3%overfit254
Ichimoku: buy above the cloud187.9%×54-9.8%-7.7%overfit434
2-day RSI (the Connors rule)110.4%×54-10.8%-8.7%overfit683
The MACD cross (12/26/9)98.3%×54-11.0%-8.9%overfit666
The Turtles: 55-day breakout90.8%×54-11.1%-9.0%overfit136
Smart Money: the liquidity sweep5.8%×54-13.0%-10.9%overfit124
ADX: trade only in strong trends4.7%×54-13.0%-10.9%overfit1082
ICT / Smart Money: the order block-1.0%×54-13.2%-11.1%overfit22
ICT / Smart Money: the fair value gap-20.9%×54-13.9%-11.8%overfit264
Kaufman’s adaptive moving average (KAMA)-27.2%×54-14.1%-12.0%overfit1214
Upper Bollinger band breakout-45.9%×54-15.0%-13.0%overfit550
Heikin Ashi: follow the coloured candles-57.9%×54-15.8%-13.7%overfit2078

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