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Finaxion Research · GLD

Which strategy works on GLD?

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

Findings

On GLD, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is Supertrend: the line that changes colour, at -1.7 points a year over buying and holding GLD. The worst is ICT / Smart Money: the fair value gap, at -11.7 points a year against buy-and-hold.

  1. On GLD, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Supertrend: the line that changes colour: -1.7 points a year over buying and holding GLD.
  3. The worst is ICT / Smart Money: the fair value gap: -11.7 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
Supertrend: the line that changes colour558.0%820.3%-1.7%-1.9%overfit49
“Sell in May and go away”440.4%820.3%-2.7%-2.9%43
The golden cross (50/200)435.7%820.3%-2.7%-2.9%overfit28
Only invest above the 200-day average366.0%820.3%-3.4%-3.6%overfit162
Parabolic SAR: follow the dots214.2%820.3%-5.3%-5.5%overfit442
The MACD cross (12/26/9)188.3%820.3%-5.7%-6.0%overfit435
Ichimoku: buy above the cloud155.0%820.3%-6.3%-6.6%overfit303
The Turtles: 55-day breakout138.4%820.3%-6.6%-6.9%overfit89
ADX: trade only in strong trends118.2%820.3%-7.1%-7.3%overfit770
Stochastic: oversold cross (14, 3)116.5%820.3%-7.1%-7.3%overfit312
RSI 14: buy oversold (30/70)94.5%820.3%-7.6%-7.8%overfit34
Bounce off the lower Bollinger band84.5%820.3%-7.9%-8.1%overfit178
Kaufman’s adaptive moving average (KAMA)59.6%820.3%-8.6%-8.8%overfit742
Wyckoff: buying the accumulation27.7%820.3%-9.6%-9.8%overfit129
2-day RSI (the Connors rule)2.1%820.3%-10.6%-10.9%overfit459
Upper Bollinger band breakout-0.0%820.3%-10.7%-10.9%overfit356
ICT / Smart Money: the order block-2.7%820.3%-10.9%-11.1%overfit26
Smart Money: the liquidity sweep-6.1%820.3%-11.0%-11.2%overfit52
Heikin Ashi: follow the coloured candles-10.7%820.3%-11.2%-11.5%overfit1572
ICT / Smart Money: the fair value gap-18.4%820.3%-11.7%-11.9%overfit196

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