The best indicator for Datadog (DDOG)
We backtested 20 indicators across daily, weekly and hourly charts on real Datadog (DDOG) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Bollinger Mean-Reversion
On the daily chart, this is the strongest risk-adjusted edge we found for Datadog (DDOG) over ~6.7 years — beating buy-and-hold by 5.6% 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 | Bollinger Mean-Reversion ✓ | Daily | 37.1% | 1.16 | -33.5% | 83.3% | 30 | 5.6% |
| 2 | Holy Grail Confluence ✓ | Daily | 35.0% | 0.98 | -27.7% | 92.9% | 14 | 3.6% |
| 3 | RSI Trend (>50) ✓ | Weekly | 29.8% | 0.83 | -39.3% | 60.0% | 15 | -2.0% |
| 4 | Donchian Breakout ✓ | Daily | 22.9% | 0.74 | -42.5% | 50.0% | 24 | -8.5% |
| 5 | Bollinger Breakout ✓ | Daily | 18.3% | 0.72 | -31.4% | 46.7% | 30 | -13.1% |
| 6 | EMA-10 Trend ✓ | Daily | 23.3% | 0.71 | -57.9% | 44.8% | 145 | -8.1% |
| 7 | Donchian Midline ✓ | Weekly | 22.7% | 0.7 | -49.9% | 50.0% | 18 | -9.2% |
| 8 | Williams %R ✓ | Daily | 18.6% | 0.64 | -40.9% | 62.5% | 40 | -12.8% |
| 9 | Stochastic | Daily | 18.6% | 0.63 | -43.2% | 63.9% | 36 | -12.9% |
| 10 | ADX / DMI ✓ | Daily | 16.7% | 0.62 | -34.3% | 53.2% | 47 | -14.7% |
| 11 | Donchian Midline ✓ | Daily | 18.5% | 0.62 | -69.8% | 35.8% | 95 | -12.9% |
| 12 | EMA 20/50 Cross ✓ | Daily | 17.8% | 0.6 | -55.6% | 53.3% | 15 | -13.7% |
| 13 | Heikin-Ashi Trend ✓ | Daily | 18.3% | 0.6 | -70.1% | 47.3% | 332 | -13.1% |
| 14 | CCI ✓ | Daily | 16.6% | 0.59 | -38.8% | 62.9% | 35 | -14.9% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Datadog (DDOG), Bollinger Mean-Reversion 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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