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Finaxion Research · MPWR

Which strategy works on MPWR?

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

Findings

On MPWR, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is RSI 14: buy oversold (30/70): -8.5 points a year over buying and holding MPWR. The worst is Heikin Ashi: follow the coloured candles: -30.5 points a year against buy-and-hold.

  1. On MPWR, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is RSI 14: buy oversold (30/70): -8.5 points a year over buying and holding MPWR.
  3. The worst is Heikin Ashi: follow the coloured candles: -30.5 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
RSI 14: buy oversold (30/70)×33×151-8.5%+6.4%partly46
Only invest above the 200-day average×30×151-8.9%+6.0%overfit145
“Sell in May and go away”×30×151-9.0%+5.9%overfit43
Wyckoff: buying the accumulation×13×151-13.2%+1.7%overfit155
The golden cross (50/200)×13×151-13.3%+1.6%overfit27
The MACD cross (12/26/9)×12×151-13.7%+1.2%overfit428
Ichimoku: buy above the cloud×12×151-13.7%+1.2%partly252
Kaufman’s adaptive moving average (KAMA)526.0%×151-17.1%-2.2%overfit732
Stochastic: oversold cross (14, 3)324.0%×151-19.0%-4.1%overfit293
ADX: trade only in strong trends299.3%×151-19.3%-4.4%overfit732
The Turtles: 55-day breakout295.6%×151-19.4%-4.5%overfit94
Supertrend: the line that changes colour241.8%×151-20.1%-5.2%partly29
2-day RSI (the Connors rule)232.5%×151-20.2%-5.3%overfit456
Parabolic SAR: follow the dots227.4%×151-20.3%-5.4%overfit522
Smart Money: the liquidity sweep39.3%×151-24.4%-9.5%overfit70
Bounce off the lower Bollinger band19.4%×151-25.1%-10.2%overfit164
ICT / Smart Money: the order block2.9%×151-25.8%-10.9%6
ICT / Smart Money: the fair value gap-3.9%×151-26.1%-11.2%overfit162
Upper Bollinger band breakout-52.6%×151-29.3%-14.4%overfit396
Heikin Ashi: follow the coloured candles-63.7%×151-30.5%-15.6%overfit1474

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