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Finaxion Research · LII

Which strategy works on LII?

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

Findings

On LII, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is "Sell in May and go away" at -1.1 points a year over buying and holding LII, while the worst is Heikin Ashi: follow the coloured candles at -17.7 points a year against buy-and-hold.

  1. On LII, 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”: -1.1 points a year over buying and holding LII.
  3. The worst is Heikin Ashi: follow the coloured candles: -17.7 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”×25×32-1.1%+4.1%54
Stochastic: oversold cross (14, 3)×13×32-3.6%+1.5%partly379
The golden cross (50/200)631.6%×32-6.0%-0.9%overfit36
Supertrend: the line that changes colour626.8%×32-6.1%-0.9%partly40
Ichimoku: buy above the cloud416.3%×32-7.4%-2.3%partly330
Only invest above the 200-day average367.0%×32-7.8%-2.6%overfit206
RSI 14: buy oversold (30/70)290.0%×32-8.5%-3.4%partly43
2-day RSI (the Connors rule)241.4%×32-9.0%-3.9%overfit613
Wyckoff: buying the accumulation178.3%×32-9.8%-4.7%overfit168
The Turtles: 55-day breakout166.4%×32-10.0%-4.8%partly110
ADX: trade only in strong trends104.3%×32-11.0%-5.8%overfit880
The MACD cross (12/26/9)54.6%×32-12.0%-6.9%overfit549
Bounce off the lower Bollinger band23.6%×32-12.9%-7.7%overfit219
ICT / Smart Money: the fair value gap12.4%×32-13.2%-8.1%overfit178
ICT / Smart Money: the order block0.1%×32-13.7%-8.5%overfit12
Smart Money: the liquidity sweep-14.5%×32-14.3%-9.1%overfit106
Parabolic SAR: follow the dots-37.1%×32-15.4%-10.2%overfit622
Upper Bollinger band breakout-38.6%×32-15.5%-10.3%overfit456
Kaufman’s adaptive moving average (KAMA)-65.7%×32-17.6%-12.4%overfit1018
Heikin Ashi: follow the coloured candles-67.3%×32-17.7%-12.6%overfit1760

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