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Finaxion Research · WAB

Which strategy works on WAB?

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

Findings

On WAB, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is "Sell in May and go away": -0.4 points a year over buying and holding WAB. The worst is Heikin Ashi: follow the coloured candles: -19.8 points a year against buy-and-hold.

  1. On WAB, 0 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”: -0.4 points a year over buying and holding WAB.
  3. The worst is Heikin Ashi: follow the coloured candles: -19.8 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
“Sell in May and go away”×38×42-0.4%+1.6%62
Wyckoff: buying the accumulation×12×42-4.6%-2.6%overfit183
RSI 14: buy oversold (30/70)×11×42-4.7%-2.8%overfit54
Stochastic: oversold cross (14, 3)598.0%×42-6.3%-4.3%overfit432
The golden cross (50/200)578.4%×42-6.4%-4.4%overfit45
Supertrend: the line that changes colour470.8%×42-7.0%-5.0%overfit57
Bounce off the lower Bollinger band286.8%×42-8.3%-6.3%overfit246
Only invest above the 200-day average226.4%×42-8.9%-6.9%overfit249
The Turtles: 55-day breakout198.7%×42-9.2%-7.2%overfit121
The MACD cross (12/26/9)116.7%×42-10.2%-8.3%overfit628
Parabolic SAR: follow the dots82.8%×42-10.8%-8.8%overfit691
2-day RSI (the Connors rule)69.3%×42-11.0%-9.1%overfit682
Ichimoku: buy above the cloud37.1%×42-11.7%-9.8%overfit427
ICT / Smart Money: the order block-0.6%×42-12.8%-10.8%overfit12
ADX: trade only in strong trends-24.4%×42-13.6%-11.7%overfit981
Smart Money: the liquidity sweep-40.2%×42-14.4%-12.4%overfit134
ICT / Smart Money: the fair value gap-43.4%×42-14.6%-12.6%overfit250
Kaufman’s adaptive moving average (KAMA)-49.7%×42-14.9%-13.0%overfit1111
Upper Bollinger band breakout-71.0%×42-16.6%-14.7%overfit550
Heikin Ashi: follow the coloured candles-89.8%×42-19.8%-17.8%overfit2050

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