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Finaxion Research · LVS

Which strategy works on LVS?

On LVS, 9 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On LVS, 9 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is Only invest above the 200-day average: +8.5 points a year over buying and holding LVS. The worst is RSI 14: buy oversold (30/70): -11.3 points a year against buy-and-hold.

  1. On LVS, 9 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Only invest above the 200-day average: +8.5 points a year over buying and holding LVS.
  3. The worst is RSI 14: buy oversold (30/70): -11.3 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
Only invest above the 200-day average760.2%50.3%+8.5%-0.5%overfit138
The golden cross (50/200)710.4%50.3%+8.2%-0.8%overfit30
Supertrend: the line that changes colour467.0%50.3%+6.4%-2.6%overfit34
The Turtles: 55-day breakout354.0%50.3%+5.3%-3.7%overfit78
2-day RSI (the Connors rule)221.5%50.3%+3.6%-5.4%overfit561
Ichimoku: buy above the cloud182.3%50.3%+3.0%-6.0%overfit276
The MACD cross (12/26/9)175.8%50.3%+2.9%-6.1%overfit416
Heikin Ashi: follow the coloured candles126.6%50.3%+2.0%-7.0%overfit1424
“Sell in May and go away”103.0%50.3%+1.4%-7.6%43
Upper Bollinger band breakout29.0%50.3%-0.7%-9.7%overfit294
Kaufman’s adaptive moving average (KAMA)23.5%50.3%-0.9%-9.9%overfit774
ADX: trade only in strong trends8.4%50.3%-1.5%-10.5%overfit670
ICT / Smart Money: the order block-2.5%50.3%-2.0%-11.0%6
Smart Money: the liquidity sweep-20.8%50.3%-3.0%-12.0%overfit72
ICT / Smart Money: the fair value gap-24.9%50.3%-3.2%-12.2%overfit138
Bounce off the lower Bollinger band-38.0%50.3%-4.1%-13.1%overfit196
Parabolic SAR: follow the dots-50.3%50.3%-5.1%-14.1%overfit482
Stochastic: oversold cross (14, 3)-52.1%50.3%-5.2%-14.2%overfit288
Wyckoff: buying the accumulation-74.2%50.3%-8.0%-17.0%overfit130
RSI 14: buy oversold (30/70)-88.3%50.3%-11.3%-20.3%overfit35

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