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Finaxion Research · ISRG

Which strategy works on ISRG?

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

Findings

On ISRG, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is Parabolic SAR: follow the dots, at -3.5 points a year over buying and holding ISRG. The worst is ICT / Smart Money: the fair value gap, at -24.3 points a year against buy-and-hold.

  1. On ISRG, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Parabolic SAR: follow the dots: -3.5 points a year over buying and holding ISRG.
  3. The worst is ICT / Smart Money: the fair value gap: -24.3 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
Parabolic SAR: follow the dots×86×186-3.5%+10.1%overfit552
Supertrend: the line that changes colour×40×186-6.9%+6.7%partly43
The golden cross (50/200)×33×186-7.8%+5.9%partly50
Ichimoku: buy above the cloud×26×186-8.8%+4.8%partly264
Only invest above the 200-day average×23×186-9.2%+4.4%partly204
Heikin Ashi: follow the coloured candles×17×186-10.6%+3.0%overfit1712
Wyckoff: buying the accumulation889.2%×186-12.9%+0.7%overfit172
RSI 14: buy oversold (30/70)700.7%×186-13.8%-0.1%overfit49
ADX: trade only in strong trends667.8%×186-14.0%-0.3%partly826
Kaufman’s adaptive moving average (KAMA)630.2%×186-14.2%-0.5%partly918
The Turtles: 55-day breakout512.7%×186-14.9%-1.2%overfit104
The MACD cross (12/26/9)439.7%×186-15.4%-1.8%overfit538
“Sell in May and go away”427.0%×186-15.5%-1.9%overfit52
Stochastic: oversold cross (14, 3)296.5%×186-16.7%-3.0%overfit341
2-day RSI (the Connors rule)256.8%×186-17.1%-3.4%partly626
Bounce off the lower Bollinger band243.3%×186-17.2%-3.6%overfit220
Smart Money: the liquidity sweep4.8%×186-21.9%-8.2%overfit76
ICT / Smart Money: the order block1.9%×186-22.0%-8.3%8
Upper Bollinger band breakout-13.3%×186-22.6%-9.0%overfit420
ICT / Smart Money: the fair value gap-45.3%×186-24.3%-10.7%overfit208

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