The best indicator for Canada (EWC)
We backtested 20 indicators across daily, weekly and hourly charts on real Canada (EWC) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
EMA 20/50 Cross
On the daily chart, this is the strongest risk-adjusted edge we found for Canada (EWC) over ~30.2 years — trailing buy-and-hold by 1.5% 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 | EMA 20/50 Cross ✓ | Daily | 7.5% | 0.58 | -36.9% | 50.0% | 68 | -1.5% |
| 2 | Donchian Midline ✓ | Weekly | 7.5% | 0.56 | -40.4% | 54.4% | 79 | -1.4% |
| 3 | EMA 50/200 Cross ✓ | Daily | 7.1% | 0.53 | -36.3% | 47.4% | 19 | -1.8% |
| 4 | Donchian Breakout ✓ | Weekly | 6.3% | 0.5 | -39.9% | 60.0% | 20 | -2.6% |
| 5 | SMA 50/200 Cross ✓ | Daily | 5.8% | 0.44 | -45.3% | 50.0% | 18 | -3.1% |
| 6 | MACD ✓ | Weekly | 4.7% | 0.41 | -39.3% | 48.3% | 60 | -4.1% |
| 7 | EMA-10 Trend ✓ | Weekly | 4.8% | 0.4 | -41.5% | 51.1% | 139 | -4.1% |
| 8 | Rate of Change ✓ | Daily | 4.5% | 0.38 | -31.5% | 47.8% | 454 | -4.5% |
| 9 | Rate of Change ✓ | Weekly | 4.6% | 0.38 | -52.2% | 57.4% | 101 | -4.3% |
| 10 | Donchian Midline ✓ | Daily | 4.4% | 0.37 | -43.7% | 43.7% | 403 | -4.6% |
| 11 | RSI Trend (>50) ✓ | Weekly | 4.4% | 0.37 | -47.6% | 52.8% | 89 | -4.5% |
| 12 | Bollinger Breakout ✓ | Weekly | 3.1% | 0.34 | -28.2% | 56.7% | 30 | -5.7% |
| 13 | ADX / DMI ✓ | Weekly | 2.8% | 0.32 | -27.7% | 62.5% | 40 | -6.1% |
| 14 | RSI Trend (>50) ✓ | Daily | 3.2% | 0.3 | -45.5% | 42.0% | 431 | -5.7% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Canada (EWC), EMA 20/50 Cross on the daily 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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