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Finaxion Research · MAR

Which strategy works on MAR?

On MAR, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On MAR, 1 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": +2.0 points a year over buying and holding MAR. The worst is Heikin Ashi: follow the coloured candles: -19.9 points a year against buy-and-hold.

  1. On MAR, 1 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”: +2.0 points a year over buying and holding MAR.
  3. The worst is Heikin Ashi: follow the coloured candles: -19.9 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”×44×26+2.0%+5.3%57
Only invest above the 200-day average×12×26-3.2%+0.1%partly197
Supertrend: the line that changes colour840.5%×26-4.0%-0.7%overfit45
The golden cross (50/200)664.5%×26-4.8%-1.5%partly31
The MACD cross (12/26/9)371.3%×26-6.6%-3.3%partly567
Wyckoff: buying the accumulation342.6%×26-6.8%-3.5%overfit165
2-day RSI (the Connors rule)262.3%×26-7.6%-4.3%overfit667
ADX: trade only in strong trends237.6%×26-7.8%-4.5%overfit922
Stochastic: oversold cross (14, 3)165.9%×26-8.7%-5.4%overfit369
RSI 14: buy oversold (30/70)140.5%×26-9.1%-5.8%overfit44
Ichimoku: buy above the cloud116.4%×26-9.4%-6.2%overfit404
Bounce off the lower Bollinger band55.4%×26-10.6%-7.4%overfit228
Kaufman’s adaptive moving average (KAMA)26.3%×26-11.4%-8.1%overfit1016
Smart Money: the liquidity sweep13.2%×26-11.8%-8.5%overfit108
ICT / Smart Money: the order block1.4%×26-12.1%-8.9%overfit14
ICT / Smart Money: the fair value gap1.1%×26-12.2%-8.9%overfit258
Parabolic SAR: follow the dots1.0%×26-12.2%-8.9%overfit666
The Turtles: 55-day breakout-6.9%×26-12.4%-9.2%overfit126
Upper Bollinger band breakout-20.6%×26-13.0%-9.7%overfit442
Heikin Ashi: follow the coloured candles-89.6%×26-19.9%-16.6%overfit1896

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