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Finaxion Research · TRI

Which strategy works on TRI?

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

Findings

On TRI, 0 of 20 famous strategies beat buy-and-hold on daily bars, and 0 of them hold out of sample. The best is the golden cross (50/200): -0.4 points a year over buying and holding TRI. The worst is Upper Bollinger band breakout: -12.6 points a year against buy-and-hold.

  1. On TRI, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is the golden cross (50/200): -0.4 points a year over buying and holding TRI.
  3. The worst is Upper Bollinger band breakout: -12.6 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
The golden cross (50/200)511.9%578.4%-0.4%-2.9%overfit32
“Sell in May and go away”266.9%578.4%-2.7%-5.1%overfit48
Only invest above the 200-day average213.0%578.4%-3.4%-5.8%overfit199
Wyckoff: buying the accumulation138.1%578.4%-4.6%-7.0%overfit126
Supertrend: the line that changes colour131.8%578.4%-4.7%-7.1%overfit34
Stochastic: oversold cross (14, 3)112.0%578.4%-5.1%-7.5%overfit314
Bounce off the lower Bollinger band102.6%578.4%-5.3%-7.7%overfit190
RSI 14: buy oversold (30/70)61.2%578.4%-6.2%-8.7%overfit37
2-day RSI (the Connors rule)43.4%578.4%-6.7%-9.2%overfit548
The MACD cross (12/26/9)29.2%578.4%-7.2%-9.6%overfit500
Parabolic SAR: follow the dots23.0%578.4%-7.4%-9.8%overfit538
The Turtles: 55-day breakout2.2%578.4%-8.1%-10.6%overfit103
Smart Money: the liquidity sweep-5.8%578.4%-8.5%-10.9%overfit104
ICT / Smart Money: the order block-8.6%578.4%-8.6%-11.0%overfit18
Kaufman’s adaptive moving average (KAMA)-12.9%578.4%-8.8%-11.2%overfit897
Ichimoku: buy above the cloud-13.2%578.4%-8.8%-11.2%overfit353
ICT / Smart Money: the fair value gap-21.9%578.4%-9.2%-11.7%overfit210
ADX: trade only in strong trends-43.4%578.4%-10.5%-13.0%overfit781
Heikin Ashi: follow the coloured candles-60.2%578.4%-12.0%-14.4%overfit1631
Upper Bollinger band breakout-66.4%578.4%-12.6%-15.1%overfit422

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