The best indicator for Cadence Design Systems (CDNS)
We backtested 20 indicators across daily, weekly and hourly charts on real Cadence Design Systems (CDNS) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Donchian Midline
On the weekly chart, this is the strongest risk-adjusted edge we found for Cadence Design Systems (CDNS) over ~39.1 years — trailing buy-and-hold by 2.6% 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 | Donchian Midline ✓ | Weekly | 11.8% | 0.53 | -51.1% | 55.1% | 98 | -2.6% |
| 2 | RSI Trend (>50) ✓ | Weekly | 11.1% | 0.51 | -62.1% | 51.6% | 91 | -3.4% |
| 3 | EMA 20/50 Cross ✓ | Weekly | 10.9% | 0.49 | -82.7% | 47.4% | 19 | -3.6% |
| 4 | EMA 20/50 Cross ✓ | Daily | 10.4% | 0.48 | -64.8% | 52.8% | 89 | -4.0% |
| 5 | Rate of Change ✓ | Weekly | 9.8% | 0.46 | -77.9% | 56.6% | 106 | -4.7% |
| 6 | EMA 50/200 Cross ✓ | Daily | 9.2% | 0.44 | -72.3% | 40.6% | 32 | -5.2% |
| 7 | ADX / DMI ✓ | Weekly | 6.5% | 0.39 | -58.5% | 38.0% | 50 | -8.0% |
| 8 | EMA-10 Trend ✓ | Weekly | 7.3% | 0.39 | -78.1% | 50.5% | 182 | -7.2% |
| 9 | MACD ✓ | Weekly | 6.9% | 0.38 | -77.1% | 53.3% | 90 | -7.6% |
| 10 | Donchian Breakout ✓ | Weekly | 6.2% | 0.36 | -77.7% | 48.6% | 35 | -8.2% |
| 11 | Bollinger Mean-Reversion ✓ | Daily | 5.7% | 0.35 | -74.3% | 74.3% | 167 | -8.7% |
| 12 | WaveTrend (8/6/4) ✓ | Daily | 6.2% | 0.35 | -84.9% | 71.0% | 145 | -8.2% |
| 13 | Stochastic ✓ | Daily | 5.6% | 0.34 | -80.0% | 71.6% | 190 | -8.7% |
| 14 | Williams %R ✓ | Daily | 6.0% | 0.34 | -74.9% | 70.4% | 243 | -8.4% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Cadence Design Systems (CDNS), Donchian Midline on the weekly timeframe gave the best balance of return and risk in our test. It still trailed buy-and-hold on raw return — 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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