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Finaxion Research · IVZ

Which strategy works on IVZ?

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

Findings

On IVZ, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is 2-day RSI (the Connors rule): -0.1 points a year over buying and holding IVZ. The worst is Upper Bollinger band breakout: -12.8 points a year against buy-and-hold.

  1. On IVZ, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is 2-day RSI (the Connors rule): -0.1 points a year over buying and holding IVZ.
  3. The worst is Upper Bollinger band breakout: -12.8 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
2-day RSI (the Connors rule)×12×12-0.1%-2.4%overfit766
“Sell in May and go away”×11×12-0.2%-2.5%62
Only invest above the 200-day average590.1%×12-1.9%-4.2%overfit253
Ichimoku: buy above the cloud368.7%×12-3.2%-5.6%overfit367
The golden cross (50/200)326.1%×12-3.5%-5.9%overfit45
ADX: trade only in strong trends254.6%×12-4.2%-6.5%overfit997
Wyckoff: buying the accumulation178.6%×12-5.0%-7.3%overfit196
Stochastic: oversold cross (14, 3)55.6%×12-6.9%-9.2%overfit428
RSI 14: buy oversold (30/70)46.0%×12-7.1%-9.5%overfit54
The Turtles: 55-day breakout44.0%×12-7.1%-9.5%overfit129
The MACD cross (12/26/9)41.5%×12-7.2%-9.6%overfit617
ICT / Smart Money: the fair value gap20.8%×12-7.7%-10.1%overfit276
Bounce off the lower Bollinger band12.4%×12-7.9%-10.3%overfit264
Smart Money: the liquidity sweep2.4%×12-8.2%-10.6%overfit90
ICT / Smart Money: the order block-1.7%×12-8.4%-10.8%10
Kaufman’s adaptive moving average (KAMA)-6.9%×12-8.6%-10.9%overfit1089
Supertrend: the line that changes colour-28.5%×12-9.4%-11.8%overfit83
Parabolic SAR: follow the dots-46.0%×12-10.3%-12.7%overfit677
Heikin Ashi: follow the coloured candles-63.0%×12-11.5%-13.9%overfit2099
Upper Bollinger band breakout-75.5%×12-12.8%-15.1%overfit478

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