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Finaxion Research · USD/CAD

Which strategy works on USD/CAD?

On USD/CAD, 5 of 17 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On USD/CAD, 5 of 17 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is Supertrend: the line that changes colour: +1.6 points a year over buying and holding USD/CAD. The worst is Parabolic SAR: follow the dots: -1.5 points a year against buy-and-hold.

  1. On USD/CAD, 5 of 17 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is Supertrend: the line that changes colour: +1.6 points a year over buying and holding USD/CAD.
  3. The worst is Parabolic SAR: follow the dots: -1.5 points a year against buy-and-hold.

The 17 strategies, one by one

StrategyReturnBuy and holdExcess (pts/yr)Vs. S&P 500 (pts/yr)Out of sampleTrades
Supertrend: the line that changes colour46.7%1.7%+1.6%-9.5%5
Stochastic: oversold cross (14, 3)15.9%1.7%+0.6%-10.5%overfit351
Bounce off the lower Bollinger band10.2%1.7%+0.4%-10.7%overfit177
Upper Bollinger band breakout4.0%1.7%+0.1%-11.0%overfit324
2-day RSI (the Connors rule)3.0%1.7%+0.1%-11.0%overfit564
ICT / Smart Money: the fair value gap-0.6%1.7%-0.1%-11.2%overfit180
“Sell in May and go away”-1.1%1.7%-0.1%-11.2%overfit46
The MACD cross (12/26/9)-1.7%1.7%-0.1%-11.2%overfit500
RSI 14: buy oversold (30/70)-3.9%1.7%-0.2%-11.3%overfit39
The golden cross (50/200)-5.8%1.7%-0.3%-11.4%overfit37
The Turtles: 55-day breakout-8.7%1.7%-0.5%-11.5%overfit66
Only invest above the 200-day average-9.1%1.7%-0.5%-11.6%overfit225
Kaufman’s adaptive moving average (KAMA)-11.7%1.7%-0.6%-11.7%overfit926
Ichimoku: buy above the cloud-14.1%1.7%-0.7%-11.8%overfit348
ADX: trade only in strong trends-23.7%1.7%-1.2%-12.3%overfit826
Heikin Ashi: follow the coloured candles-24.6%1.7%-1.3%-12.4%overfit1627
Parabolic SAR: follow the dots-28.0%1.7%-1.5%-12.6%overfit569

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