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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 TSLA?

Supertrend: the line that changes colour does not beat buy-and-hold on TSLA: -22.3 points a year over 16 years.

Total return
×14
Buy and hold
×231
CAGR
17.7%
Sharpe
0.50
Max drawdown
-65.9%
Trades
32
Out of sample
—
Years
16
1×10×100×20112013201520172019202120232025
StrategyTSLA

Findings

  1. Supertrend: the line that changes colour does not beat buy-and-hold on TSLA: -22.3 points a year over 16 years.
  2. Against the S&P 500 over the same window: +2.6 points a year.
  3. Total return ×14 versus ×231 for buy-and-hold, with 32 trades.
  4. Maximum drawdown -65.9%.
  5. It beats in neither half of the history (split at 2018).
  6. It ranks #34 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 TSLA 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 TSLA → · Full page for Supertrend: the line that changes colour →

How to cite

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

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