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Finaxion Research · PRU

Which strategy works on PRU?

On PRU, 0 of 19 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On PRU, 0 of 19 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 -1.6 points a year over buying and holding PRU. The worst is Heikin Ashi: follow the coloured candles, at -17.2 points a year against buy-and-hold.

  1. On PRU, 0 of 19 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): -1.6 points a year over buying and holding PRU.
  3. The worst is Heikin Ashi: follow the coloured candles: -17.2 points a year against buy-and-hold.

The 19 strategies, one by one

StrategyReturnBuy and holdExcess (pts/yr)Vs. S&P 500 (pts/yr)Out of sampleTrades
RSI 14: buy oversold (30/70)497.3%767.8%-1.6%-2.6%overfit44
“Sell in May and go away”407.8%767.8%-2.3%-3.3%overfit49
Supertrend: the line that changes colour185.4%767.8%-4.8%-5.7%partly34
2-day RSI (the Connors rule)172.5%767.8%-5.0%-5.9%overfit560
The golden cross (50/200)108.4%767.8%-6.1%-7.0%overfit43
Stochastic: oversold cross (14, 3)99.4%767.8%-6.3%-7.2%overfit343
Bounce off the lower Bollinger band68.8%767.8%-7.0%-7.9%overfit208
Only invest above the 200-day average52.3%767.8%-7.4%-8.3%overfit239
Ichimoku: buy above the cloud47.4%767.8%-7.6%-8.5%overfit353
The MACD cross (12/26/9)46.9%767.8%-7.6%-8.5%overfit540
ICT / Smart Money: the fair value gap23.1%767.8%-8.3%-9.2%overfit192
The Turtles: 55-day breakout0.0%767.8%-9.1%-10.1%overfit111
Smart Money: the liquidity sweep-14.1%767.8%-9.7%-10.7%overfit74
ADX: trade only in strong trends-16.5%767.8%-9.9%-10.8%overfit808
Wyckoff: buying the accumulation-40.8%767.8%-11.2%-12.2%overfit106
Kaufman’s adaptive moving average (KAMA)-41.2%767.8%-11.3%-12.2%overfit915
Upper Bollinger band breakout-64.8%767.8%-13.3%-14.2%overfit402
Parabolic SAR: follow the dots-74.6%767.8%-14.5%-15.5%overfit574
Heikin Ashi: follow the coloured candles-87.3%767.8%-17.2%-18.1%overfit1692

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