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Finaxion Research · PFG

Which strategy works on PFG?

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

Findings

On PFG, 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): -0.9 points a year over buying and holding PFG. The worst is Heikin Ashi: follow the coloured candles: -18.8 points a year against buy-and-hold.

  1. On PFG, 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): -0.9 points a year over buying and holding PFG.
  3. The worst is Heikin Ashi: follow the coloured candles: -18.8 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)722.7%920.1%-0.9%-1.3%partly37
Wyckoff: buying the accumulation531.4%920.1%-2.1%-2.4%112
“Sell in May and go away”353.2%920.1%-3.5%-3.9%overfit50
Supertrend: the line that changes colour250.3%920.1%-4.6%-5.0%overfit37
RSI 14: buy oversold (30/70)190.5%920.1%-5.4%-5.8%overfit40
Bounce off the lower Bollinger band183.3%920.1%-5.5%-5.9%partly194
2-day RSI (the Connors rule)179.5%920.1%-5.6%-5.9%overfit540
Stochastic: oversold cross (14, 3)129.7%920.1%-6.4%-6.7%overfit347
The MACD cross (12/26/9)129.7%920.1%-6.4%-6.7%overfit494
Only invest above the 200-day average68.1%920.1%-7.7%-8.0%overfit221
Ichimoku: buy above the cloud48.3%920.1%-8.2%-8.5%overfit347
The Turtles: 55-day breakout19.4%920.1%-9.1%-9.4%overfit103
Parabolic SAR: follow the dots17.5%920.1%-9.1%-9.5%overfit562
ICT / Smart Money: the order block-5.9%920.1%-10.0%-10.4%overfit14
Smart Money: the liquidity sweep-18.4%920.1%-10.6%-10.9%overfit68
ICT / Smart Money: the fair value gap-24.1%920.1%-10.9%-11.2%overfit200
ADX: trade only in strong trends-54.5%920.1%-12.9%-13.3%overfit858
Upper Bollinger band breakout-74.9%920.1%-15.2%-15.6%overfit396
Kaufman’s adaptive moving average (KAMA)-82.8%920.1%-16.6%-17.0%overfit954
Heikin Ashi: follow the coloured candles-90.4%920.1%-18.8%-19.2%overfit1658

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