FINAXIONResearch
Finaxion Research · IT

Which strategy works on IT?

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

Findings

On IT, 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 -0.2 points a year over buying and holding IT, while the worst is Bounce off the lower Bollinger band, at -16.9 points a year against buy-and-hold.

  1. On IT, 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: -0.2 points a year over buying and holding IT.
  3. The worst is Bounce off the lower Bollinger band: -16.9 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×62×65-0.2%+2.5%overfit55
The golden cross (50/200)×35×65-2.1%+0.6%partly40
Ichimoku: buy above the cloud×12×65-5.6%-2.9%overfit423
Only invest above the 200-day average×12×65-5.7%-3.0%partly273
“Sell in May and go away”686.7%×65-7.1%-4.4%overfit66
Parabolic SAR: follow the dots637.0%×65-7.3%-4.6%overfit722
The MACD cross (12/26/9)363.5%×65-8.8%-6.1%overfit646
RSI 14: buy oversold (30/70)306.4%×65-9.2%-6.5%partly64
Kaufman’s adaptive moving average (KAMA)257.2%×65-9.6%-6.9%overfit1199
The Turtles: 55-day breakout215.1%×65-10.0%-7.3%partly139
Stochastic: oversold cross (14, 3)70.3%×65-11.9%-9.2%overfit416
2-day RSI (the Connors rule)22.4%×65-12.9%-10.2%overfit748
Wyckoff: buying the accumulation6.8%×65-13.3%-10.7%overfit219
ICT / Smart Money: the order block-2.4%×65-13.6%-10.9%16
ADX: trade only in strong trends-34.9%×65-14.8%-12.2%overfit1101
ICT / Smart Money: the fair value gap-37.2%×65-15.0%-12.3%overfit246
Upper Bollinger band breakout-48.4%×65-15.5%-12.8%overfit568
Smart Money: the liquidity sweep-57.5%×65-16.1%-13.4%overfit98
Heikin Ashi: follow the coloured candles-65.7%×65-16.7%-14.1%overfit2239
Bounce off the lower Bollinger band-68.0%×65-16.9%-14.3%overfit254

Finaxion is an analysis tool, not an investment adviser. This page is not a recommendation. Past performance does not guarantee future results. Prices and series: market data. Computations: Finaxion engine.