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Finaxion Research · Heikin Ashi: follow the coloured candles · single stocks · Recomputed 2026-09-10

Does Heikin Ashi: follow the coloured candles work on ZBH?

Heikin Ashi: follow the coloured candles does not beat buy-and-hold on ZBH: -13.7 points a year over 25 years.

Total return
-88.0%
Buy and hold
292.2%
CAGR
-8.1%
Sharpe
-0.54
Max drawdown
-90.0%
Trades
1666
Out of sample
overfit
Years
25
1×6×2002200420062008201020122014201620182020202220242026
StrategyZBH

Findings

  1. Heikin Ashi: follow the coloured candles does not beat buy-and-hold on ZBH: -13.7 points a year over 25 years.
  2. Against the S&P 500 over the same window: -17.8 points a year.
  3. Total return -88.0% versus +292.2% for buy-and-hold, with 1666 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -90.0%.
  6. It beats in neither half of the history (split at 2014).
  7. It ranks #202 of 235 markets for this strategy by annual excess over the S&P 500.

Findings derived from the full panel. Each carries its number and its denominator; the computations are reproducible with artifact 2aad8ceec7e6.

Exactly what was tested

Long while the Heikin Ashi candle is bullish (HA close above HA open); exit on the first bearish candle.

How to read it

The verdict compares the strategy with buying and holding ZBH over the same window, with round-trip costs per asset class. “Out of sample” is walk-forward: the rule is fit on one stretch and judged on the next. A result that beats in the full sample but not out of it is overfit. Full methodology in the protocol. How we test.

Open this backtest with its trades   Trades (CSV)

Every strategy on ZBH → · Full page for Heikin Ashi: follow the coloured candles →

How to cite

Finaxion Research (2026). Does Heikin Ashi: follow the coloured candles work on ZBH?. Daily backtest 1962-01-01–2026-08-31, artifact 2aad8ceec7e6. https://finaxion.app/en/research/heikin-ashi/zbh

Not a recommendation. Past performance does not guarantee future results.