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Finaxion Research · LDOS

Which strategy works on LDOS?

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

Findings

On LDOS, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is "Sell in May and go away": -5.9 points a year over buying and holding LDOS. The worst is Heikin Ashi: follow the coloured candles: -13.2 points a year against buy-and-hold.

  1. On LDOS, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is “Sell in May and go away”: -5.9 points a year over buying and holding LDOS.
  3. The worst is Heikin Ashi: follow the coloured candles: -13.2 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
“Sell in May and go away”111.2%530.2%-5.9%-7.3%40
RSI 14: buy oversold (30/70)101.8%530.2%-6.1%-7.5%overfit36
Wyckoff: buying the accumulation93.1%530.2%-6.3%-7.7%overfit127
Bounce off the lower Bollinger band86.0%530.2%-6.5%-7.9%overfit170
Supertrend: the line that changes colour83.8%530.2%-6.6%-8.0%overfit23
Ichimoku: buy above the cloud74.6%530.2%-6.9%-8.2%overfit241
The MACD cross (12/26/9)73.6%530.2%-6.9%-8.3%overfit374
The golden cross (50/200)66.0%530.2%-7.1%-8.5%overfit38
Parabolic SAR: follow the dots59.8%530.2%-7.3%-8.7%overfit434
The Turtles: 55-day breakout56.7%530.2%-7.4%-8.8%overfit83
Kaufman’s adaptive moving average (KAMA)19.3%530.2%-8.8%-10.2%overfit720
Only invest above the 200-day average17.1%530.2%-8.9%-10.3%overfit200
ICT / Smart Money: the order block3.2%530.2%-9.5%-10.9%overfit12
Stochastic: oversold cross (14, 3)1.9%530.2%-9.6%-11.0%overfit259
Smart Money: the liquidity sweep-2.7%530.2%-9.8%-11.2%overfit90
ICT / Smart Money: the fair value gap-14.5%530.2%-10.5%-11.9%overfit86
ADX: trade only in strong trends-15.2%530.2%-10.5%-11.9%overfit637
2-day RSI (the Connors rule)-26.6%530.2%-11.3%-12.6%overfit422
Upper Bollinger band breakout-32.6%530.2%-11.7%-13.1%overfit290
Heikin Ashi: follow the coloured candles-50.4%530.2%-13.2%-14.6%overfit1301

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