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Finaxion Research · TKO

Which strategy works on TKO?

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

Findings

On TKO, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is Wyckoff: buying the accumulation: +1.8 points a year over buying and holding TKO. The worst is Kaufman’s adaptive moving average (KAMA): -12.8 points a year against buy-and-hold.

  1. On TKO, 1 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Wyckoff: buying the accumulation: +1.8 points a year over buying and holding TKO.
  3. The worst is Kaufman’s adaptive moving average (KAMA): -12.8 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
Wyckoff: buying the accumulation×26×17+1.8%+4.2%overfit183
Supertrend: the line that changes colour×13×17-1.1%+1.3%overfit36
“Sell in May and go away”×12×17-1.4%+1.0%54
The golden cross (50/200)675.2%×17-3.3%-0.9%overfit40
The Turtles: 55-day breakout493.0%×17-4.4%-1.9%overfit102
Only invest above the 200-day average489.1%×17-4.4%-2.0%overfit214
The MACD cross (12/26/9)383.1%×17-5.2%-2.8%overfit516
Parabolic SAR: follow the dots121.3%×17-8.2%-5.8%overfit574
RSI 14: buy oversold (30/70)111.0%×17-8.4%-6.0%overfit50
Bounce off the lower Bollinger band54.4%×17-9.6%-7.2%overfit222
Stochastic: oversold cross (14, 3)52.1%×17-9.6%-7.2%overfit366
Ichimoku: buy above the cloud46.7%×17-9.8%-7.4%overfit402
2-day RSI (the Connors rule)43.5%×17-9.9%-7.4%overfit605
ADX: trade only in strong trends25.6%×17-10.4%-8.0%overfit834
Upper Bollinger band breakout22.9%×17-10.4%-8.0%overfit448
Heikin Ashi: follow the coloured candles17.0%×17-10.6%-8.2%overfit1752
ICT / Smart Money: the order block-0.6%×17-11.2%-8.8%overfit14
Smart Money: the liquidity sweep-3.7%×17-11.4%-8.9%overfit108
ICT / Smart Money: the fair value gap-26.2%×17-12.3%-9.9%overfit168
Kaufman’s adaptive moving average (KAMA)-34.2%×17-12.8%-10.4%overfit992

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