The best indicator for Bank of America (BAC)
We backtested 20 indicators across daily, weekly and hourly charts on real Bank of America (BAC) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
RSI Trend (>50)
On the daily chart, this is the strongest risk-adjusted edge we found for Bank of America (BAC) over ~53.3 years — beating buy-and-hold by 2.5% CAGR.
The winner on each chart
Every indicator, ranked
Ranked by Sharpe (risk-adjusted return). Hypothetical, fees included.
| # | Indicator | TF | CAGR | Sharpe | Max DD | Win | Trades | vs B&H |
|---|---|---|---|---|---|---|---|---|
| 1 | RSI Trend (>50) ✓ | Daily | 9.4% | 0.5 | -69.5% | 39.1% | 681 | 2.5% |
| 2 | Heikin-Ashi Trend ✓ | Daily | 9.8% | 0.5 | -76.3% | 45.2% | 2518 | 2.9% |
| 3 | EMA-10 Trend ✓ | Daily | 8.9% | 0.47 | -89.0% | 39.1% | 1149 | 1.9% |
| 4 | MACD ✓ | Weekly | 9.1% | 0.47 | -62.6% | 50.0% | 96 | 2.1% |
| 5 | Donchian Midline ✓ | Daily | 8.0% | 0.44 | -78.5% | 39.5% | 702 | 1.0% |
| 6 | MACD ✓ | Daily | 7.3% | 0.4 | -84.2% | 42.0% | 505 | 0.3% |
| 7 | EMA 20/50 Cross ✓ | Weekly | 5.7% | 0.37 | -51.4% | 52.2% | 23 | -1.2% |
| 8 | EMA-10 Trend ✓ | Weekly | 6.2% | 0.36 | -57.5% | 47.5% | 244 | -0.7% |
| 9 | EMA 20/50 Cross ✓ | Daily | 5.6% | 0.35 | -74.8% | 37.5% | 128 | -1.3% |
| 10 | Bollinger Breakout ✓ | Weekly | 4.6% | 0.35 | -53.2% | 49.0% | 51 | -2.3% |
| 11 | Rate of Change ✓ | Weekly | 5.7% | 0.35 | -71.1% | 46.0% | 176 | -1.2% |
| 12 | Rate of Change ✓ | Daily | 5.3% | 0.33 | -83.7% | 40.4% | 807 | -1.7% |
| 13 | Donchian Breakout ✓ | Daily | 4.5% | 0.32 | -76.5% | 49.0% | 208 | -2.4% |
| 14 | EMA 50/200 Cross ✓ | Daily | 4.1% | 0.3 | -63.0% | 42.1% | 38 | -2.8% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Bank of America (BAC), RSI Trend (>50) on the daily timeframe gave the best balance of return and risk in our test. It beat buy-and-hold — but remember: this is a hypothetical backtest of a standard rule, not a recommendation. Markets change. See the methodology and disclaimer.
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