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Finaxion Research · RMD

Which strategy works on RMD?

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

Findings

On RMD, 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): -8.3 points a year over buying and holding RMD. The worst is Smart Money: the liquidity sweep: -21.5 points a year against buy-and-hold.

  1. On RMD, 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): -8.3 points a year over buying and holding RMD.
  3. The worst is Smart Money: the liquidity sweep: -21.5 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)×48×434-8.3%+2.4%44
RSI 14: buy oversold (30/70)×47×434-8.3%+2.3%partly71
Parabolic SAR: follow the dots×33×434-9.5%+1.1%overfit627
The MACD cross (12/26/9)×23×434-10.9%-0.3%partly585
“Sell in May and go away”×20×434-11.3%-0.7%overfit62
Only invest above the 200-day average×17×434-11.9%-1.3%251
Supertrend: the line that changes colour×14×434-12.6%-1.9%overfit73
Wyckoff: buying the accumulation×14×434-12.6%-1.9%overfit191
Stochastic: oversold cross (14, 3)×12×434-13.0%-2.4%partly394
Heikin Ashi: follow the coloured candles711.1%×434-14.5%-3.9%overfit2173
The Turtles: 55-day breakout624.6%×434-14.9%-4.2%overfit133
Kaufman’s adaptive moving average (KAMA)605.0%×434-15.0%-4.3%overfit1101
2-day RSI (the Connors rule)371.8%×434-16.3%-5.7%overfit718
Ichimoku: buy above the cloud301.6%×434-16.9%-6.2%overfit385
Bounce off the lower Bollinger band203.5%×434-17.8%-7.2%overfit248
ADX: trade only in strong trends108.4%×434-19.1%-8.4%overfit965
ICT / Smart Money: the fair value gap63.3%×434-19.9%-9.2%overfit278
Upper Bollinger band breakout18.1%×434-20.9%-10.3%overfit516
ICT / Smart Money: the order block8.5%×434-21.2%-10.5%10
Smart Money: the liquidity sweep-2.6%×434-21.5%-10.9%overfit86

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