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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 LULU?

Supertrend: the line that changes colour beats buy-and-hold on LULU by +4.5 points a year over 19 years.

Total return
×18
Buy and hold
759.0%
CAGR
16.5%
Sharpe
0.53
Max drawdown
-62.5%
Trades
34
Out of sample
—
Years
19
1×10×2008201020122014201620182020202220242026
StrategyLULU

Findings

  1. Supertrend: the line that changes colour beats buy-and-hold on LULU by +4.5 points a year over 19 years.
  2. Against the S&P 500 over the same window: +5.3 points a year.
  3. Total return ×18 versus +759.0% for buy-and-hold, with 34 trades.
  4. Maximum drawdown -62.5%.
  5. It beat before 2017 and stopped afterwards.
  6. It ranks #21 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 LULU 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 LULU → · Full page for Supertrend: the line that changes colour →

How to cite

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

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