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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 XYL?

Supertrend: the line that changes colour does not beat buy-and-hold on XYL: -5.3 points a year over 15 years.

Total return
170.6%
Buy and hold
455.0%
CAGR
6.9%
Sharpe
0.25
Max drawdown
-29.4%
Trades
22
Out of sample
—
Years
15
0.9×1×4.2×7.5×20122014201620182020202220242026
StrategyXYL

Findings

  1. Supertrend: the line that changes colour does not beat buy-and-hold on XYL: -5.3 points a year over 15 years.
  2. Against the S&P 500 over the same window: -8.3 points a year.
  3. Total return +170.6% versus +455.0% for buy-and-hold, with 22 trades.
  4. Maximum drawdown -29.4%.
  5. It did not beat before 2019 and started afterwards.
  6. It ranks #180 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 XYL 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 XYL → · Full page for Supertrend: the line that changes colour →

How to cite

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

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