The best indicator for Robinhood Markets (HOOD)
We backtested 20 indicators across daily, weekly and hourly charts on real Robinhood Markets (HOOD) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Donchian Breakout
On the daily chart, this is the strongest risk-adjusted edge we found for Robinhood Markets (HOOD) over ~4.8 years — beating buy-and-hold by 12.1% 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 | Donchian Breakout ✓ | Daily | 31.6% | 0.9 | -52.9% | 46.7% | 15 | 12.1% |
| 2 | Bollinger Breakout ✓ | Daily | 28.1% | 0.85 | -49.0% | 50.0% | 18 | 8.6% |
| 3 | EMA-10 Trend ✓ | Weekly | 29.0% | 0.8 | -45.9% | 47.6% | 21 | 9.9% |
| 4 | Donchian Midline ✓ | Weekly | 30.5% | 0.81 | -48.9% | 42.9% | 14 | 11.4% |
| 5 | Williams %R ✓ | Daily | 23.0% | 0.69 | -73.8% | 75.0% | 32 | 3.5% |
| 6 | RSI Trend (>50) ✓ | Daily | 20.9% | 0.64 | -54.5% | 35.1% | 57 | 1.4% |
| 7 | Heikin-Ashi Trend ✓ | Daily | 22.1% | 0.62 | -79.6% | 46.2% | 238 | 2.6% |
| 8 | EMA-10 Trend ✓ | Daily | 18.9% | 0.6 | -69.4% | 41.2% | 102 | -0.6% |
| 9 | Rate of Change ✓ | Daily | 14.9% | 0.53 | -63.3% | 31.8% | 66 | -4.6% |
| 10 | Heikin-Ashi Trend ✓ | Weekly | 13.6% | 0.5 | -51.2% | 42.9% | 42 | -5.5% |
| 11 | EMA 20/50 Cross ✓ | Daily | 23.4% | 0.69 | -45.5% | 36.4% | 11 | 3.8% |
| 12 | Rate of Change ✓ | Weekly | 15.7% | 0.54 | -47.5% | 53.8% | 13 | -3.4% |
| 13 | MACD ✓ | Weekly | 27.3% | 0.74 | -46.7% | 50.0% | 8 | 8.2% |
| 14 | Donchian Midline ✓ | Daily | 7.0% | 0.38 | -69.0% | 29.2% | 65 | -12.5% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Robinhood Markets (HOOD), Donchian Breakout 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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