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Finaxion Research · MLM

Which strategy works on MLM?

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

Findings

On MLM, 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 MLM. The worst is Heikin Ashi: follow the coloured candles: -14.4 points a year against buy-and-hold.

  1. On MLM, 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 MLM.
  3. The worst is Heikin Ashi: follow the coloured candles: -14.4 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
“Sell in May and go away”×57×32+2.0%+2.3%65
Supertrend: the line that changes colour×22×32-1.2%-0.9%partly48
The golden cross (50/200)508.4%×32-5.5%-5.2%overfit52
The Turtles: 55-day breakout323.4%×32-6.7%-6.3%overfit124
RSI 14: buy oversold (30/70)310.0%×32-6.8%-6.5%partly57
Wyckoff: buying the accumulation287.7%×32-7.0%-6.6%overfit228
2-day RSI (the Connors rule)281.5%×32-7.0%-6.7%overfit815
Only invest above the 200-day average233.2%×32-7.5%-7.1%overfit256
Bounce off the lower Bollinger band202.8%×32-7.8%-7.4%overfit263
Ichimoku: buy above the cloud157.1%×32-8.3%-7.9%overfit434
Stochastic: oversold cross (14, 3)136.7%×32-8.5%-8.2%overfit433
The MACD cross (12/26/9)98.2%×32-9.1%-8.8%overfit665
Parabolic SAR: follow the dots89.4%×32-9.2%-8.9%overfit718
Smart Money: the liquidity sweep14.6%×32-10.8%-10.5%overfit160
ICT / Smart Money: the fair value gap4.4%×32-11.1%-10.8%overfit260
ICT / Smart Money: the order block1.1%×32-11.2%-10.8%overfit16
Kaufman’s adaptive moving average (KAMA)-10.8%×32-11.6%-11.2%overfit1172
ADX: trade only in strong trends-21.8%×32-12.0%-11.6%overfit1068
Upper Bollinger band breakout-28.2%×32-12.2%-11.9%overfit524
Heikin Ashi: follow the coloured candles-65.3%×32-14.4%-14.1%overfit2150

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