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Finaxion Research · STLD

Which strategy works on STLD?

On STLD, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On STLD, 1 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": +1.5 points a year over buying and holding STLD. The worst is Upper Bollinger band breakout: -17.9 points a year against buy-and-hold.

  1. On STLD, 1 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 STLD.
  3. The worst is Upper Bollinger band breakout: -17.9 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”×116×79+1.5%+7.3%overfit59
ADX: trade only in strong trends×15×79-6.3%-0.5%overfit958
RSI 14: buy oversold (30/70)×13×79-6.9%-1.0%overfit49
Only invest above the 200-day average964.6%×79-7.5%-1.7%overfit251
Supertrend: the line that changes colour766.5%×79-8.3%-2.5%partly40
Kaufman’s adaptive moving average (KAMA)706.7%×79-8.5%-2.7%overfit1048
The golden cross (50/200)427.9%×79-10.1%-4.2%overfit47
Wyckoff: buying the accumulation307.4%×79-11.0%-5.1%overfit204
The MACD cross (12/26/9)278.9%×79-11.2%-5.4%overfit612
Parabolic SAR: follow the dots168.2%×79-12.4%-6.6%overfit684
Ichimoku: buy above the cloud95.2%×79-13.5%-7.7%overfit430
Stochastic: oversold cross (14, 3)75.8%×79-13.9%-8.1%overfit393
The Turtles: 55-day breakout34.1%×79-14.8%-9.0%overfit126
Bounce off the lower Bollinger band31.5%×79-14.9%-9.1%overfit249
2-day RSI (the Connors rule)24.8%×79-15.1%-9.2%overfit678
Heikin Ashi: follow the coloured candles11.8%×79-15.4%-9.6%overfit1975
ICT / Smart Money: the order block-1.8%×79-15.9%-10.1%6
ICT / Smart Money: the fair value gap-23.5%×79-16.7%-10.9%overfit250
Smart Money: the liquidity sweep-35.9%×79-17.3%-11.5%overfit90
Upper Bollinger band breakout-47.1%×79-17.9%-12.1%overfit514

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