The best indicator for Euro Stoxx 50
We backtested 20 indicators across daily, weekly and hourly charts on real Euro Stoxx 50 history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Bollinger Mean-Reversion
On the daily chart, this is the strongest risk-adjusted edge we found for Euro Stoxx 50 over ~19.1 years — beating buy-and-hold by 2.0% 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 | Bollinger Mean-Reversion ✓ | Daily | 4.0% | 0.34 | -33.3% | 70.8% | 106 | 2.0% |
| 2 | Holy Grail Confluence ✓ | Daily | 2.9% | 0.33 | -31.1% | 84.2% | 19 | 0.9% |
| 3 | WaveTrend (8/6/4) ✓ | Daily | 3.7% | 0.3 | -45.2% | 67.5% | 77 | 1.7% |
| 4 | Williams %R ✓ | Weekly | 3.5% | 0.3 | -46.7% | 80.0% | 30 | 1.6% |
| 5 | Stochastic ✓ | Weekly | 3.0% | 0.28 | -46.7% | 70.0% | 20 | 1.1% |
| 6 | Money Flow Index ✓ | Daily | 3.0% | 0.33 | -33.9% | 70.0% | 10 | 1.1% |
| 7 | Donchian Midline ✓ | Weekly | 2.0% | 0.22 | -37.3% | 46.0% | 50 | 0.1% |
| 8 | CCI ✓ | Daily | 1.6% | 0.18 | -45.8% | 71.9% | 96 | -0.3% |
| 9 | Donchian Breakout ✓ | Weekly | 1.4% | 0.18 | -24.9% | 57.1% | 14 | -0.6% |
| 10 | WaveTrend (8/6/4) ✓ | Weekly | 1.6% | 0.18 | -53.1% | 69.2% | 13 | -0.3% |
| 11 | Stochastic ✓ | Daily | 1.0% | 0.14 | -38.3% | 66.7% | 93 | -0.9% |
| 12 | RSI Mean-Reversion ✓ | Daily | 0.9% | 0.13 | -35.4% | 60.7% | 28 | -1.1% |
| 13 | Bollinger Breakout ✓ | Weekly | 0.4% | 0.1 | -15.4% | 64.3% | 14 | -1.5% |
| 14 | Bollinger Breakout ✓ | Daily | 0.4% | 0.09 | -24.0% | 37.9% | 66 | -1.6% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Euro Stoxx 50, Bollinger Mean-Reversion 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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