The best indicator for Taiwan (EWT)
We backtested 20 indicators across daily, weekly and hourly charts on real Taiwan (EWT) 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 Taiwan (EWT) over ~25.9 years — beating buy-and-hold by 0.1% 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 | 7.3% | 0.48 | -32.4% | 42.6% | 54 | 0.1% |
| 2 | EMA 50/200 Cross ✓ | Daily | 6.6% | 0.43 | -37.9% | 64.7% | 17 | -0.6% |
| 3 | Donchian Breakout ✓ | Weekly | 5.7% | 0.43 | -30.1% | 63.6% | 22 | -1.4% |
| 4 | ADX / DMI ✓ | Daily | 4.3% | 0.38 | -36.5% | 38.2% | 144 | -2.9% |
| 5 | EMA-10 Trend ✓ | Weekly | 5.4% | 0.38 | -43.6% | 50.0% | 116 | -1.8% |
| 6 | MACD ✓ | Weekly | 5.2% | 0.37 | -34.4% | 51.9% | 54 | -2.0% |
| 7 | Donchian Midline ✓ | Weekly | 4.9% | 0.36 | -38.3% | 53.4% | 73 | -2.2% |
| 8 | SMA 50/200 Cross ✓ | Daily | 4.6% | 0.34 | -41.6% | 47.4% | 19 | -2.6% |
| 9 | Bollinger Mean-Reversion ✓ | Daily | 4.0% | 0.32 | -46.7% | 64.0% | 114 | -3.2% |
| 10 | EMA 20/50 Cross ✓ | Weekly | 5.4% | 0.38 | -33.6% | 50.0% | 12 | -1.8% |
| 11 | RSI Trend (>50) ✓ | Daily | 3.1% | 0.26 | -52.3% | 37.3% | 365 | -4.1% |
| 12 | Bollinger Breakout ✓ | Daily | 2.6% | 0.26 | -33.9% | 42.7% | 117 | -4.6% |
| 13 | RSI Trend (>50) ✓ | Weekly | 3.1% | 0.26 | -38.6% | 48.1% | 81 | -4.1% |
| 14 | WaveTrend (8/6/4) ✓ | Weekly | 3.1% | 0.25 | -50.2% | 81.2% | 16 | -4.1% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Taiwan (EWT), EMA 20/50 Cross 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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