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Finaxion Research · MTD

Which strategy works on MTD?

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

Findings

On MTD, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is RSI 14: buy oversold (30/70), at -4.0 points a year over buying and holding MTD. The worst is Smart Money: the liquidity sweep, at -17.5 points a year against buy-and-hold.

  1. On MTD, 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): -4.0 points a year over buying and holding MTD.
  3. The worst is Smart Money: the liquidity sweep: -17.5 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)×34×94-4.0%+3.6%partly62
The golden cross (50/200)×19×94-6.4%+1.2%47
“Sell in May and go away”×15×94-7.2%+0.5%overfit57
Only invest above the 200-day average975.5%×94-8.5%-0.9%213
Stochastic: oversold cross (14, 3)694.6%×94-9.6%-2.0%overfit411
Ichimoku: buy above the cloud539.8%×94-10.4%-2.8%overfit343
Supertrend: the line that changes colour426.2%×94-11.2%-3.5%overfit43
Bounce off the lower Bollinger band240.4%×94-12.8%-5.1%overfit236
Parabolic SAR: follow the dots185.7%×94-13.4%-5.8%overfit626
The Turtles: 55-day breakout166.7%×94-13.6%-6.0%overfit123
2-day RSI (the Connors rule)155.3%×94-13.8%-6.2%overfit640
The MACD cross (12/26/9)138.1%×94-14.0%-6.4%overfit564
Kaufman’s adaptive moving average (KAMA)97.3%×94-14.7%-7.1%overfit1009
Heikin Ashi: follow the coloured candles77.8%×94-15.1%-7.4%overfit1829
ADX: trade only in strong trends52.4%×94-15.6%-8.0%overfit943
ICT / Smart Money: the fair value gap51.7%×94-15.7%-8.0%overfit227
Upper Bollinger band breakout16.8%×94-16.6%-8.9%overfit490
ICT / Smart Money: the order block1.5%×94-17.1%-9.4%overfit20
Wyckoff: buying the accumulation-6.6%×94-17.4%-9.7%overfit158
Smart Money: the liquidity sweep-9.7%×94-17.5%-9.8%overfit72

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