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Finaxion Research · Supertrend: the line that changes colour · single stocks · Recomputed 2026-09-10

Does Supertrend: the line that changes colour work on HIG?

Supertrend: the line that changes colour does not beat buy-and-hold on HIG: -2.2 points a year over 31 years.

Total return
458.5%
Buy and hold
951.1%
CAGR
5.8%
Sharpe
0.20
Max drawdown
-81.5%
Trades
43
Out of sample
—
Years
31
1×10×19961999200220052008201120142017202020232026
StrategyHIG

Findings

  1. Supertrend: the line that changes colour does not beat buy-and-hold on HIG: -2.2 points a year over 31 years.
  2. Against the S&P 500 over the same window: -4.7 points a year.
  3. Total return +458.5% versus +951.1% for buy-and-hold, with 43 trades.
  4. Maximum drawdown -81.5%.
  5. It beat before 2011 and stopped afterwards.
  6. It ranks #119 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 e097c9613211.

Exactly what was tested

Entry when the close exceeds the upper band (ATR 10, multiplier 3); exit when the close drops below the lower band. The classic Supertrend definition.

How to read it

The verdict compares the strategy with buying and holding HIG 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 HIG → · Full page for Supertrend: the line that changes colour →

How to cite

Finaxion Research (2026). Does Supertrend: the line that changes colour work on HIG?. Daily backtest 1962-01-01–2026-08-31, artifact e097c9613211. https://finaxion.app/en/research/supertrend/hig

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