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Finaxion Research · REG

Which strategy works on REG?

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

Findings

On REG, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is the golden cross (50/200): -1.7 points a year over buying and holding REG. The worst is Heikin Ashi: follow the coloured candles: -13.6 points a year against buy-and-hold.

  1. On REG, 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): -1.7 points a year over buying and holding REG.
  3. The worst is Heikin Ashi: follow the coloured candles: -13.6 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)×13×21-1.7%-2.7%overfit49
“Sell in May and go away”×11×21-2.1%-3.2%66
Stochastic: oversold cross (14, 3)778.5%×21-2.9%-4.0%overfit481
Only invest above the 200-day average401.2%×21-4.7%-5.8%overfit307
RSI 14: buy oversold (30/70)384.7%×21-4.9%-5.9%overfit53
Bounce off the lower Bollinger band302.9%×21-5.4%-6.5%overfit269
Supertrend: the line that changes colour213.2%×21-6.2%-7.3%overfit64
2-day RSI (the Connors rule)129.0%×21-7.2%-8.3%overfit771
The MACD cross (12/26/9)62.7%×21-8.3%-9.3%overfit700
The Turtles: 55-day breakout50.0%×21-8.5%-9.6%overfit140
Ichimoku: buy above the cloud43.1%×21-8.7%-9.7%overfit472
Smart Money: the liquidity sweep7.7%×21-9.6%-10.6%overfit94
ICT / Smart Money: the order block6.6%×21-9.6%-10.6%overfit18
ICT / Smart Money: the fair value gap5.4%×21-9.6%-10.7%overfit258
ADX: trade only in strong trends-19.3%×21-10.4%-11.5%overfit1052
Kaufman’s adaptive moving average (KAMA)-22.4%×21-10.6%-11.6%overfit1240
Parabolic SAR: follow the dots-27.3%×21-10.8%-11.8%overfit744
Wyckoff: buying the accumulation-39.3%×21-11.3%-12.3%overfit174
Upper Bollinger band breakout-54.3%×21-12.1%-13.2%overfit546
Heikin Ashi: follow the coloured candles-71.8%×21-13.6%-14.6%overfit2154

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