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Finaxion Research · HIG

Which strategy works on HIG?

On HIG, 2 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On HIG, 2 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": +1.7 points a year over buying and holding HIG. The worst is Upper Bollinger band breakout: -11.0 points a year against buy-and-hold.

  1. On HIG, 2 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”: +1.7 points a year over buying and holding HIG.
  3. The worst is Upper Bollinger band breakout: -11.0 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”×17951.1%+1.7%-0.8%overfit61
The golden cross (50/200)×12951.1%+0.6%-1.8%overfit37
Only invest above the 200-day average773.0%951.1%-0.6%-3.1%247
Ichimoku: buy above the cloud630.8%951.1%-1.3%-3.7%partly411
Supertrend: the line that changes colour458.5%951.1%-2.2%-4.7%43
2-day RSI (the Connors rule)192.3%951.1%-4.4%-6.9%overfit716
The Turtles: 55-day breakout153.2%951.1%-4.9%-7.3%overfit119
The MACD cross (12/26/9)124.7%951.1%-5.3%-7.7%overfit624
Wyckoff: buying the accumulation63.7%951.1%-6.3%-8.8%overfit162
Smart Money: the liquidity sweep9.2%951.1%-7.7%-10.1%overfit96
ICT / Smart Money: the order block4.0%951.1%-7.8%-10.3%overfit24
RSI 14: buy oversold (30/70)4.0%951.1%-7.8%-10.3%overfit48
Kaufman’s adaptive moving average (KAMA)-3.0%951.1%-8.1%-10.5%overfit1146
ADX: trade only in strong trends-9.2%951.1%-8.3%-10.7%overfit996
ICT / Smart Money: the fair value gap-13.1%951.1%-8.4%-10.9%overfit210
Stochastic: oversold cross (14, 3)-19.5%951.1%-8.7%-11.1%overfit409
Bounce off the lower Bollinger band-35.4%951.1%-9.4%-11.8%overfit234
Heikin Ashi: follow the coloured candles-43.3%951.1%-9.8%-12.3%overfit2044
Parabolic SAR: follow the dots-54.8%951.1%-10.5%-13.0%overfit725
Upper Bollinger band breakout-61.1%951.1%-11.0%-13.5%overfit538

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