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Finaxion Research · FLEX

Which strategy works on FLEX?

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

Findings

On FLEX, 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): -0.7 points a year over buying and holding FLEX. The worst is Upper Bollinger band breakout: -20.1 points a year against buy-and-hold.

  1. On FLEX, 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): -0.7 points a year over buying and holding FLEX.
  3. The worst is Upper Bollinger band breakout: -20.1 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
Stochastic: oversold cross (14, 3)×65×80-0.7%+2.8%overfit475
The golden cross (50/200)×36×80-2.7%+0.8%overfit43
Only invest above the 200-day average×26×80-3.9%-0.4%overfit275
Ichimoku: buy above the cloud×20×80-4.7%-1.1%overfit456
Parabolic SAR: follow the dots×14×80-6.0%-2.4%overfit692
“Sell in May and go away”×12×80-6.4%-2.9%overfit65
Wyckoff: buying the accumulation371.8%×80-9.6%-6.0%overfit201
Bounce off the lower Bollinger band321.5%×80-9.9%-6.4%overfit254
Heikin Ashi: follow the coloured candles272.8%×80-10.3%-6.8%overfit2153
Supertrend: the line that changes colour257.1%×80-10.4%-6.9%overfit53
The Turtles: 55-day breakout225.7%×80-10.7%-7.2%overfit132
2-day RSI (the Connors rule)219.3%×80-10.8%-7.3%overfit786
ICT / Smart Money: the fair value gap165.3%×80-11.4%-7.9%overfit272
Kaufman’s adaptive moving average (KAMA)118.1%×80-12.0%-8.5%overfit1192
RSI 14: buy oversold (30/70)111.2%×80-12.1%-8.6%overfit50
The MACD cross (12/26/9)102.5%×80-12.3%-8.7%overfit652
ADX: trade only in strong trends90.2%×80-12.5%-8.9%overfit1046
ICT / Smart Money: the order block0.6%×80-14.4%-10.9%10
Smart Money: the liquidity sweep-8.4%×80-14.7%-11.2%overfit90
Upper Bollinger band breakout-84.8%×80-20.1%-16.6%overfit490

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