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Finaxion Research · HSIC

Which strategy works on HSIC?

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

Findings

On HSIC, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is RSI 14: buy oversold (30/70): -2.2 points a year over buying and holding HSIC. The worst is the Turtles: 55-day breakout: -13.8 points a year against buy-and-hold.

  1. On HSIC, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is RSI 14: buy oversold (30/70): -2.2 points a year over buying and holding HSIC.
  3. The worst is the Turtles: 55-day breakout: -13.8 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
RSI 14: buy oversold (30/70)968.0%×20-2.2%-2.6%overfit64
“Sell in May and go away”869.7%×20-2.6%-2.9%61
Stochastic: oversold cross (14, 3)554.0%×20-3.9%-4.3%partly442
The golden cross (50/200)268.6%×20-5.9%-6.2%overfit47
Wyckoff: buying the accumulation108.1%×20-7.8%-8.2%overfit176
Only invest above the 200-day average99.8%×20-8.0%-8.3%overfit271
Parabolic SAR: follow the dots81.6%×20-8.3%-8.6%overfit709
Heikin Ashi: follow the coloured candles59.3%×20-8.7%-9.0%overfit1985
Bounce off the lower Bollinger band54.4%×20-8.8%-9.1%overfit244
Smart Money: the liquidity sweep35.2%×20-9.2%-9.6%overfit98
Supertrend: the line that changes colour17.9%×20-9.7%-10.0%overfit43
Ichimoku: buy above the cloud16.2%×20-9.7%-10.1%overfit467
ICT / Smart Money: the order block2.5%×20-10.1%-10.5%overfit16
Kaufman’s adaptive moving average (KAMA)-2.4%×20-10.3%-10.6%overfit1223
The MACD cross (12/26/9)-2.8%×20-10.3%-10.7%overfit634
2-day RSI (the Connors rule)-7.4%×20-10.5%-10.8%overfit722
ADX: trade only in strong trends-8.5%×20-10.5%-10.8%overfit1053
ICT / Smart Money: the fair value gap-30.3%×20-11.4%-11.7%overfit200
Upper Bollinger band breakout-34.2%×20-11.6%-11.9%overfit468
The Turtles: 55-day breakout-67.0%×20-13.8%-14.1%overfit143

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