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Finaxion Research · RSG

Which strategy works on RSG?

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

Findings

On RSG, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is "Sell in May and go away" at -1.5 points a year over buying and holding RSG, while the worst is Heikin Ashi: follow the coloured candles at -15.6 points a year against buy-and-hold.

  1. On RSG, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is “Sell in May and go away”: -1.5 points a year over buying and holding RSG.
  3. The worst is Heikin Ashi: follow the coloured candles: -15.6 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
“Sell in May and go away”×14×21-1.5%+1.0%overfit56
RSI 14: buy oversold (30/70)×11×21-2.3%+0.2%overfit53
Only invest above the 200-day average297.9%×21-6.3%-3.8%overfit211
The golden cross (50/200)281.3%×21-6.5%-4.0%overfit39
The MACD cross (12/26/9)249.1%×21-6.8%-4.3%overfit575
Supertrend: the line that changes colour108.6%×21-8.7%-6.2%overfit38
Parabolic SAR: follow the dots97.4%×21-8.9%-6.4%overfit633
Stochastic: oversold cross (14, 3)97.0%×21-8.9%-6.4%overfit368
2-day RSI (the Connors rule)67.0%×21-9.5%-7.0%overfit592
Wyckoff: buying the accumulation54.9%×21-9.8%-7.3%overfit147
ADX: trade only in strong trends10.2%×21-11.0%-8.5%overfit867
Ichimoku: buy above the cloud3.4%×21-11.3%-8.7%overfit427
ICT / Smart Money: the order block-8.6%×21-11.7%-9.2%overfit32
ICT / Smart Money: the fair value gap-19.2%×21-12.1%-9.6%overfit206
Smart Money: the liquidity sweep-26.0%×21-12.4%-9.9%overfit98
Bounce off the lower Bollinger band-26.4%×21-12.5%-9.9%overfit204
The Turtles: 55-day breakout-40.7%×21-13.2%-10.7%overfit132
Upper Bollinger band breakout-44.1%×21-13.4%-10.9%overfit474
Kaufman’s adaptive moving average (KAMA)-54.8%×21-14.2%-11.6%overfit983
Heikin Ashi: follow the coloured candles-70.6%×21-15.6%-13.1%overfit1850

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