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Finaxion Research · MCO

Which strategy works on MCO?

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

Findings

On MCO, 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 -3.9 points a year over buying and holding MCO, while the worst is Upper Bollinger band breakout at -17.3 points a year against buy-and-hold.

  1. On MCO, 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”: -3.9 points a year over buying and holding MCO.
  3. The worst is Upper Bollinger band breakout: -17.3 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
“Sell in May and go away”×26×79-3.9%-0.3%overfit64
Supertrend: the line that changes colour×16×79-5.5%-1.9%overfit49
Only invest above the 200-day average×12×79-6.5%-2.9%overfit227
The golden cross (50/200)882.7%×79-7.2%-3.6%overfit45
RSI 14: buy oversold (30/70)628.3%×79-8.2%-4.6%overfit48
Wyckoff: buying the accumulation490.0%×79-9.0%-5.3%overfit156
Stochastic: oversold cross (14, 3)426.8%×79-9.3%-5.7%partly426
Ichimoku: buy above the cloud354.6%×79-9.8%-6.2%overfit433
2-day RSI (the Connors rule)291.1%×79-10.3%-6.7%overfit712
Bounce off the lower Bollinger band81.8%×79-12.8%-9.2%overfit216
The Turtles: 55-day breakout81.3%×79-12.8%-9.2%overfit139
Parabolic SAR: follow the dots29.5%×79-13.9%-10.2%overfit721
Smart Money: the liquidity sweep13.0%×79-14.3%-10.7%overfit104
ICT / Smart Money: the order block0.9%×79-14.7%-11.0%overfit22
ADX: trade only in strong trends-19.1%×79-15.4%-11.7%overfit1015
Kaufman’s adaptive moving average (KAMA)-19.5%×79-15.4%-11.7%overfit1211
Heikin Ashi: follow the coloured candles-22.2%×79-15.5%-11.8%overfit2069
ICT / Smart Money: the fair value gap-24.5%×79-15.6%-11.9%overfit262
The MACD cross (12/26/9)-44.8%×79-16.5%-12.9%overfit687
Upper Bollinger band breakout-56.5%×79-17.3%-13.6%overfit564

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