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Finaxion Research · PYPL

Which strategy works on PYPL?

On PYPL, 6 of 19 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On PYPL, 6 of 19 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is the golden cross (50/200): +8.1 points a year over buying and holding PYPL. The worst is Heikin Ashi: follow the coloured candles: -18.1 points a year against buy-and-hold.

  1. On PYPL, 6 of 19 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): +8.1 points a year over buying and holding PYPL.
  3. The worst is Heikin Ashi: follow the coloured candles: -18.1 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
The golden cross (50/200)235.5%44.7%+8.1%-2.8%11
Supertrend: the line that changes colour206.1%44.7%+7.2%-3.8%12
RSI 14: buy oversold (30/70)120.7%44.7%+4.0%-7.0%22
Wyckoff: buying the accumulation69.8%44.7%+1.5%-9.4%64
Only invest above the 200-day average68.3%44.7%+1.4%-9.5%83
Stochastic: oversold cross (14, 3)60.1%44.7%+1.0%-10.0%142
The Turtles: 55-day breakout22.5%44.7%-1.5%-12.5%40
ICT / Smart Money: the fair value gap10.8%44.7%-2.4%-13.4%62
Bounce off the lower Bollinger band-4.7%44.7%-3.8%-14.8%100
Ichimoku: buy above the cloud-5.3%44.7%-3.9%-14.8%159
Smart Money: the liquidity sweep-10.7%44.7%-4.4%-15.3%30
“Sell in May and go away”-23.9%44.7%-5.8%-16.7%22
Upper Bollinger band breakout-27.7%44.7%-6.2%-17.2%184
2-day RSI (the Connors rule)-37.0%44.7%-7.4%-18.4%247
The MACD cross (12/26/9)-38.5%44.7%-7.6%-18.6%228
Parabolic SAR: follow the dots-40.8%44.7%-8.0%-18.9%254
Kaufman’s adaptive moving average (KAMA)-50.3%44.7%-9.4%-20.4%382
ADX: trade only in strong trends-50.6%44.7%-9.5%-20.5%342
Heikin Ashi: follow the coloured candles-83.1%44.7%-18.1%-29.1%784

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