The best indicator for EUR/CAD
We backtested 20 indicators across daily, weekly and hourly charts on real EUR/CAD history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
ADX / DMI
On the daily chart, this is the strongest risk-adjusted edge we found for EUR/CAD over ~23.2 years — beating buy-and-hold by 1.3% 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 | ADX / DMI ✓ | Daily | 1.5% | 0.31 | -16.2% | 30.0% | 130 | 1.3% |
| 2 | WaveTrend (8/6/4) ✓ | Daily | 1.5% | 0.28 | -21.6% | 76.3% | 93 | 1.4% |
| 3 | Bollinger Mean-Reversion ✓ | Daily | 0.4% | 0.11 | -15.9% | 57.9% | 107 | 0.3% |
| 4 | Stochastic ✓ | Daily | 0.2% | 0.06 | -30.7% | 55.8% | 129 | 0.1% |
| 5 | Bollinger Mean-Reversion ✓ | Weekly | 0.1% | 0.05 | -18.3% | 60.0% | 20 | 0.1% |
| 6 | SMA 50/200 Cross ✓ | Daily | -0.0% | 0.02 | -19.7% | 40.0% | 15 | -0.2% |
| 7 | Williams %R ✓ | Daily | -0.0% | 0.02 | -26.8% | 58.1% | 160 | -0.2% |
| 8 | Williams %R | Weekly | -0.1% | 0.01 | -16.7% | 57.1% | 28 | -0.1% |
| 9 | EMA 50/200 Cross | Daily | -0.3% | -0.02 | -20.8% | 21.1% | 19 | -0.4% |
| 10 | Stochastic | Weekly | -0.3% | -0.02 | -24.3% | 52.2% | 23 | -0.4% |
| 11 | EMA 20/50 Cross | Weekly | -0.6% | -0.07 | -27.4% | 25.0% | 12 | -0.7% |
| 12 | Donchian Breakout | Weekly | -0.4% | -0.06 | -21.1% | 50.0% | 18 | -0.5% |
| 13 | WaveTrend (8/6/4) | Weekly | -0.6% | -0.06 | -23.9% | 41.2% | 17 | -0.6% |
| 14 | RSI Mean-Reversion | Daily | -0.3% | -0.07 | -21.2% | 66.7% | 30 | -0.4% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For EUR/CAD, ADX / DMI 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.
More forex
Get the weekly edge report
The best-performing indicator per asset, what changed this week, and the honest caveats — straight to your inbox.