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Finaxion Research · UPS

Which strategy works on UPS?

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

Findings

On UPS, 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): -0.8 points a year over buying and holding UPS. The worst is Heikin Ashi: follow the coloured candles: -14.1 points a year against buy-and-hold.

  1. On UPS, 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): -0.8 points a year over buying and holding UPS.
  3. The worst is Heikin Ashi: follow the coloured candles: -14.1 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
RSI 14: buy oversold (30/70)168.0%233.2%-0.8%-4.7%overfit50
“Sell in May and go away”91.8%233.2%-2.1%-6.0%53
Stochastic: oversold cross (14, 3)79.9%233.2%-2.4%-6.3%overfit370
Supertrend: the line that changes colour63.3%233.2%-2.7%-6.7%overfit39
Bounce off the lower Bollinger band48.8%233.2%-3.1%-7.0%overfit234
2-day RSI (the Connors rule)45.7%233.2%-3.2%-7.1%overfit642
The golden cross (50/200)13.9%233.2%-4.1%-8.0%overfit39
Wyckoff: buying the accumulation13.9%233.2%-4.1%-8.0%overfit155
Smart Money: the liquidity sweep1.6%233.2%-4.5%-8.4%overfit94
The MACD cross (12/26/9)0.7%233.2%-4.6%-8.5%overfit529
ICT / Smart Money: the order block-3.1%233.2%-4.7%-8.6%overfit16
The Turtles: 55-day breakout-5.1%233.2%-4.8%-8.7%overfit104
Upper Bollinger band breakout-22.8%233.2%-5.6%-9.5%overfit396
ICT / Smart Money: the fair value gap-35.2%233.2%-6.2%-10.1%overfit198
Only invest above the 200-day average-46.9%233.2%-6.9%-10.8%overfit271
ADX: trade only in strong trends-62.7%233.2%-8.2%-12.1%overfit897
Parabolic SAR: follow the dots-79.7%233.2%-10.4%-14.3%overfit615
Kaufman’s adaptive moving average (KAMA)-82.8%233.2%-11.0%-14.9%overfit1013
Ichimoku: buy above the cloud-87.2%233.2%-12.0%-15.9%overfit438
Heikin Ashi: follow the coloured candles-93.0%233.2%-14.1%-18.0%overfit1855

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