The best indicator for GBP/AUD
We backtested 20 indicators across daily, weekly and hourly charts on real GBP/AUD 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 GBP/AUD over ~23.8 years — beating 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 | ADX / DMI ✓ | Daily | 1.5% | 0.25 | -27.1% | 34.0% | 144 | 2.6% |
| 2 | RSI Mean-Reversion | Daily | 0.6% | 0.15 | -13.1% | 66.7% | 45 | 1.7% |
| 3 | EMA 50/200 Cross ✓ | Daily | 0.3% | 0.08 | -29.0% | 26.7% | 15 | 1.4% |
| 4 | RSI Mean-Reversion ✓ | Weekly | 0.4% | 0.12 | -10.5% | 50.0% | 8 | 1.6% |
| 5 | Bollinger Breakout | Daily | 0.2% | 0.06 | -22.0% | 34.0% | 103 | 1.3% |
| 6 | Stochastic ✓ | Weekly | -0.2% | 0.01 | -32.7% | 61.5% | 26 | 1.1% |
| 7 | Donchian Midline | Weekly | -0.4% | -0.02 | -31.2% | 37.1% | 62 | 0.8% |
| 8 | Donchian Breakout | Weekly | -0.3% | -0.03 | -22.2% | 40.0% | 15 | 0.9% |
| 9 | SMA 50/200 Cross | Daily | -0.5% | -0.04 | -35.9% | 42.1% | 19 | 0.6% |
| 10 | MACD | Daily | -0.7% | -0.05 | -34.1% | 40.3% | 231 | 0.4% |
| 11 | WaveTrend (8/6/4) | Daily | -0.6% | -0.05 | -29.8% | 57.8% | 90 | 0.5% |
| 12 | EMA 20/50 Cross | Weekly | -0.9% | -0.09 | -33.9% | 30.0% | 10 | 0.3% |
| 13 | Donchian Breakout | Daily | -0.7% | -0.07 | -31.8% | 39.4% | 66 | 0.4% |
| 14 | Williams %R | Weekly | -0.7% | -0.07 | -28.9% | 51.6% | 31 | 0.6% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For GBP/AUD, 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.