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Finaxion Research · ICE

Which strategy works on ICE?

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

Findings

On ICE, 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 -3.8 points a year over buying and holding ICE. The worst is Upper Bollinger band breakout, at -18.6 points a year against buy-and-hold.

  1. On ICE, 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: -3.8 points a year over buying and holding ICE.
  3. The worst is Upper Bollinger band breakout: -18.6 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 colour×12×24-3.8%+1.6%overfit26
RSI 14: buy oversold (30/70)×11×24-4.3%+1.1%overfit48
“Sell in May and go away”770.4%×24-5.6%-0.2%overfit41
The golden cross (50/200)500.3%×24-7.5%-2.2%overfit24
Only invest above the 200-day average438.3%×24-8.1%-2.8%overfit169
2-day RSI (the Connors rule)222.4%×24-10.7%-5.4%overfit442
ADX: trade only in strong trends208.6%×24-11.0%-5.6%overfit657
Stochastic: oversold cross (14, 3)187.9%×24-11.3%-6.0%overfit274
Wyckoff: buying the accumulation151.1%×24-12.0%-6.7%overfit114
Bounce off the lower Bollinger band147.5%×24-12.1%-6.7%overfit190
The MACD cross (12/26/9)128.9%×24-12.5%-7.1%overfit431
Parabolic SAR: follow the dots28.8%×24-15.3%-10.0%overfit473
Ichimoku: buy above the cloud-0.9%×24-16.6%-11.2%overfit305
ICT / Smart Money: the order block-2.1%×24-16.6%-11.3%overfit14
The Turtles: 55-day breakout-14.7%×24-17.3%-12.0%overfit99
ICT / Smart Money: the fair value gap-22.9%×24-17.8%-12.4%overfit160
Kaufman’s adaptive moving average (KAMA)-23.4%×24-17.8%-12.5%overfit803
Smart Money: the liquidity sweep-33.3%×24-18.5%-13.1%overfit72
Upper Bollinger band breakout-35.2%×24-18.6%-13.3%overfit342
Heikin Ashi: follow the coloured candles-35.3%×24-18.6%-13.3%overfit1353

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