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Finaxion Research · FE

Which strategy works on FE?

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

Findings

On FE, 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": -1.5 points a year over buying and holding FE. The worst is Heikin Ashi: follow the coloured candles: -10.3 points a year against buy-and-hold.

  1. On FE, 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”: -1.5 points a year over buying and holding FE.
  3. The worst is Heikin Ashi: follow the coloured candles: -10.3 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”336.5%563.0%-1.5%-4.2%overfit57
Wyckoff: buying the accumulation274.8%563.0%-2.1%-4.8%overfit161
The golden cross (50/200)235.1%563.0%-2.5%-5.2%overfit41
Stochastic: oversold cross (14, 3)149.4%563.0%-3.6%-6.3%overfit389
The MACD cross (12/26/9)120.9%563.0%-4.0%-6.7%overfit584
RSI 14: buy oversold (30/70)111.6%563.0%-4.1%-6.9%overfit55
Supertrend: the line that changes colour81.9%563.0%-4.7%-7.4%overfit35
Only invest above the 200-day average51.5%563.0%-5.3%-8.0%overfit264
Parabolic SAR: follow the dots42.9%563.0%-5.5%-8.2%overfit680
The Turtles: 55-day breakout0.6%563.0%-6.8%-9.5%overfit124
Ichimoku: buy above the cloud0.0%563.0%-6.8%-9.5%overfit378
ICT / Smart Money: the fair value gap-3.2%563.0%-6.9%-9.6%overfit168
ICT / Smart Money: the order block-3.8%563.0%-6.9%-9.6%overfit16
Bounce off the lower Bollinger band-13.6%563.0%-7.3%-10.0%overfit219
Smart Money: the liquidity sweep-23.5%563.0%-7.7%-10.4%overfit104
ADX: trade only in strong trends-36.6%563.0%-8.4%-11.1%overfit926
Kaufman’s adaptive moving average (KAMA)-58.5%563.0%-9.8%-12.5%overfit1046
Upper Bollinger band breakout-60.2%563.0%-9.9%-12.6%overfit478
2-day RSI (the Connors rule)-60.6%563.0%-10.0%-12.7%overfit581
Heikin Ashi: follow the coloured candles-64.8%563.0%-10.3%-13.1%overfit1828

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