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Finaxion Research · SRE

Which strategy works on SRE?

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

Findings

On SRE, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is RSI 14: buy oversold (30/70): -2.9 points a year over buying and holding SRE. The worst is Heikin Ashi: follow the coloured candles: -15.2 points a year against buy-and-hold.

  1. On SRE, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is RSI 14: buy oversold (30/70): -2.9 points a year over buying and holding SRE.
  3. The worst is Heikin Ashi: follow the coloured candles: -15.2 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
RSI 14: buy oversold (30/70)634.3%×16-2.9%-1.5%overfit47
“Sell in May and go away”570.1%×16-3.3%-1.9%overfit56
Stochastic: oversold cross (14, 3)499.2%×16-3.7%-2.3%partly399
The golden cross (50/200)337.4%×16-4.9%-3.5%overfit40
Supertrend: the line that changes colour118.0%×16-7.4%-6.0%overfit37
Bounce off the lower Bollinger band94.8%×16-7.9%-6.5%overfit220
Ichimoku: buy above the cloud76.4%×16-8.2%-6.8%overfit356
Only invest above the 200-day average51.2%×16-8.8%-7.4%overfit304
2-day RSI (the Connors rule)44.7%×16-8.9%-7.5%overfit622
Wyckoff: buying the accumulation44.6%×16-8.9%-7.5%overfit148
The Turtles: 55-day breakout28.2%×16-9.4%-8.0%overfit118
Smart Money: the liquidity sweep9.4%×16-9.9%-8.5%overfit74
The MACD cross (12/26/9)2.6%×16-10.2%-8.8%overfit637
ICT / Smart Money: the order block-0.9%×16-10.3%-8.9%overfit22
ICT / Smart Money: the fair value gap-31.3%×16-11.6%-10.2%overfit178
ADX: trade only in strong trends-35.5%×16-11.8%-10.4%overfit950
Kaufman’s adaptive moving average (KAMA)-45.3%×16-12.4%-11.0%overfit1040
Parabolic SAR: follow the dots-62.7%×16-13.7%-12.3%overfit694
Upper Bollinger band breakout-74.4%×16-15.0%-13.6%overfit474
Heikin Ashi: follow the coloured candles-75.8%×16-15.2%-13.8%overfit1890

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