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Finaxion Research · NDAQ

Which strategy works on NDAQ?

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

Findings

On NDAQ, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is the golden cross (50/200): -0.7 points a year over buying and holding NDAQ. The worst is Smart Money: the liquidity sweep: -15.9 points a year against buy-and-hold.

  1. On NDAQ, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is the golden cross (50/200): -0.7 points a year over buying and holding NDAQ.
  3. The worst is Smart Money: the liquidity sweep: -15.9 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
The golden cross (50/200)×21×25-0.7%+2.6%overfit33
Wyckoff: buying the accumulation928.6%×25-4.1%-0.8%overfit147
Only invest above the 200-day average761.0%×25-4.9%-1.6%overfit187
Supertrend: the line that changes colour639.9%×25-5.5%-2.3%overfit37
The Turtles: 55-day breakout329.5%×25-8.0%-4.7%overfit99
The MACD cross (12/26/9)272.8%×25-8.6%-5.3%overfit455
“Sell in May and go away”253.6%×25-8.8%-5.5%overfit48
Heikin Ashi: follow the coloured candles230.4%×25-9.1%-5.8%overfit1557
RSI 14: buy oversold (30/70)154.7%×25-10.2%-7.0%overfit46
Ichimoku: buy above the cloud131.0%×25-10.7%-7.4%overfit323
Parabolic SAR: follow the dots123.1%×25-10.8%-7.5%overfit543
Stochastic: oversold cross (14, 3)81.6%×25-11.7%-8.4%overfit308
ADX: trade only in strong trends75.8%×25-11.8%-8.6%partly741
Kaufman’s adaptive moving average (KAMA)48.3%×25-12.5%-9.3%overfit875
ICT / Smart Money: the fair value gap24.4%×25-13.3%-10.0%overfit132
Upper Bollinger band breakout22.4%×25-13.4%-10.1%overfit414
ICT / Smart Money: the order block-7.4%×25-14.5%-11.2%overfit14
Bounce off the lower Bollinger band-8.8%×25-14.6%-11.3%overfit176
2-day RSI (the Connors rule)-33.4%×25-15.9%-12.6%overfit546
Smart Money: the liquidity sweep-34.7%×25-15.9%-12.7%overfit88

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