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Finaxion Research · SJM

Which strategy works on SJM?

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

Findings

On SJM, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is Stochastic: oversold cross (14, 3), at -1.4 points a year over buying and holding SJM, while the worst is Heikin Ashi: follow the coloured candles, at -13.1 points a year against buy-and-hold.

  1. On SJM, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Stochastic: oversold cross (14, 3): -1.4 points a year over buying and holding SJM.
  3. The worst is Heikin Ashi: follow the coloured candles: -13.1 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
Stochastic: oversold cross (14, 3)712.8%×12-1.4%-4.2%overfit440
RSI 14: buy oversold (30/70)460.2%×12-2.6%-5.5%partly64
Bounce off the lower Bollinger band434.0%×12-2.8%-5.7%overfit284
“Sell in May and go away”272.4%×12-4.0%-6.8%64
2-day RSI (the Connors rule)182.0%×12-4.9%-7.7%overfit738
Supertrend: the line that changes colour112.7%×12-5.8%-8.7%overfit57
Wyckoff: buying the accumulation98.3%×12-6.0%-8.9%overfit216
The golden cross (50/200)69.0%×12-6.5%-9.4%overfit51
Smart Money: the liquidity sweep37.7%×12-7.2%-10.1%overfit138
ICT / Smart Money: the order block5.8%×12-8.0%-10.9%overfit12
ICT / Smart Money: the fair value gap-23.3%×12-9.0%-11.9%overfit272
The Turtles: 55-day breakout-47.6%×12-10.2%-13.1%overfit139
The MACD cross (12/26/9)-54.5%×12-10.6%-13.5%overfit659
Ichimoku: buy above the cloud-59.5%×12-11.0%-13.9%overfit443
Kaufman’s adaptive moving average (KAMA)-63.5%×12-11.3%-14.2%overfit1151
Only invest above the 200-day average-65.1%×12-11.4%-14.3%overfit365
ADX: trade only in strong trends-69.3%×12-11.8%-14.7%overfit1033
Upper Bollinger band breakout-70.6%×12-12.0%-14.8%overfit495
Parabolic SAR: follow the dots-77.4%×12-12.7%-15.6%overfit707
Heikin Ashi: follow the coloured candles-79.9%×12-13.1%-16.0%overfit2081

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