FINAXIONResearch
Finaxion Research · ON

Which strategy works on ON?

On ON, 6 of 20 famous strategies beat buy-and-hold on daily bars; 1 of them hold out of sample.

Findings

On ON, 6 of 20 famous strategies beat buy-and-hold on daily bars, and 1 of them holds out of sample. The best is "Sell in May and go away" at +10.7 points a year over buying and holding ON, while the worst is Bounce off the lower Bollinger band at -11.1 points a year against buy-and-hold.

  1. On ON, 6 of 20 famous strategies beat buy-and-hold on daily bars; 1 of them hold out of sample.
  2. The best is “Sell in May and go away”: +10.7 points a year over buying and holding ON.
  3. The worst is Bounce off the lower Bollinger band: -11.1 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”×40208.7%+10.7%+6.6%holds52
ADX: trade only in strong trends×28208.7%+9.1%+5.0%partly812
Kaufman’s adaptive moving average (KAMA)468.6%208.7%+2.5%-1.6%overfit944
Ichimoku: buy above the cloud377.3%208.7%+1.8%-2.3%overfit342
Parabolic SAR: follow the dots320.1%208.7%+1.2%-2.8%overfit582
The Turtles: 55-day breakout209.8%208.7%+0.0%-4.0%overfit96
Only invest above the 200-day average206.5%208.7%-0.0%-4.1%overfit206
Supertrend: the line that changes colour157.5%208.7%-0.7%-4.8%overfit39
ICT / Smart Money: the fair value gap66.3%208.7%-2.4%-6.5%overfit144
The golden cross (50/200)28.8%208.7%-3.4%-7.5%overfit37
Wyckoff: buying the accumulation17.1%208.7%-3.8%-7.8%overfit188
Smart Money: the liquidity sweep4.7%208.7%-4.2%-8.3%overfit78
ICT / Smart Money: the order block-2.8%208.7%-4.5%-8.6%6
The MACD cross (12/26/9)-3.5%208.7%-4.5%-8.6%overfit543
Upper Bollinger band breakout-22.1%208.7%-5.3%-9.4%overfit422
2-day RSI (the Connors rule)-36.7%208.7%-6.1%-10.2%overfit614
Heikin Ashi: follow the coloured candles-39.5%208.7%-6.3%-10.3%overfit1766
RSI 14: buy oversold (30/70)-52.1%208.7%-7.1%-11.2%overfit50
Stochastic: oversold cross (14, 3)-81.0%208.7%-10.5%-14.6%overfit361
Bounce off the lower Bollinger band-84.0%208.7%-11.1%-15.2%overfit213

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