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Finaxion Research · MA

Which strategy works on MA?

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

Findings

On MA, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is the golden cross (50/200): -11.0 points a year over buying and holding MA. The worst is Smart Money: the liquidity sweep: -29.4 points a year against buy-and-hold.

  1. On MA, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is the golden cross (50/200): -11.0 points a year over buying and holding MA.
  3. The worst is Smart Money: the liquidity sweep: -29.4 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
The golden cross (50/200)×23×142-11.0%+5.4%overfit25
“Sell in May and go away”×20×142-11.7%+4.7%overfit40
Only invest above the 200-day average×15×142-13.4%+3.0%overfit123
Wyckoff: buying the accumulation×12×142-14.7%+1.7%overfit102
Ichimoku: buy above the cloud×11×142-15.0%+1.5%overfit265
Supertrend: the line that changes colour982.2%×142-15.2%+1.2%overfit25
Stochastic: oversold cross (14, 3)925.0%×142-15.5%+0.9%partly262
The Turtles: 55-day breakout686.5%×142-17.0%-0.5%overfit75
RSI 14: buy oversold (30/70)454.9%×142-18.8%-2.4%overfit28
Parabolic SAR: follow the dots427.3%×142-19.1%-2.7%overfit461
2-day RSI (the Connors rule)380.4%×142-19.6%-3.2%overfit444
Heikin Ashi: follow the coloured candles298.1%×142-20.6%-4.2%overfit1378
ADX: trade only in strong trends234.5%×142-21.5%-5.1%overfit707
Bounce off the lower Bollinger band222.4%×142-21.7%-5.3%overfit146
Kaufman’s adaptive moving average (KAMA)53.4%×142-25.5%-9.1%overfit759
The MACD cross (12/26/9)50.2%×142-25.7%-9.2%overfit447
Upper Bollinger band breakout4.1%×142-27.5%-11.1%overfit330
ICT / Smart Money: the order block-3.4%×142-27.9%-11.4%overfit10
ICT / Smart Money: the fair value gap-19.6%×142-28.8%-12.3%overfit174
Smart Money: the liquidity sweep-29.8%×142-29.4%-13.0%overfit74

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