The best indicator for Inv-Grade Corp (LQD)
We backtested 20 indicators across daily, weekly and hourly charts on real Inv-Grade Corp (LQD) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Donchian Midline
On the weekly chart, this is the strongest risk-adjusted edge we found for Inv-Grade Corp (LQD) over ~23.9 years — trailing buy-and-hold by 1.4% 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 Midline ✓ | Weekly | 3.1% | 0.55 | -12.7% | 49.2% | 61 | -1.4% |
| 2 | EMA 20/50 Cross ✓ | Daily | 2.8% | 0.53 | -17.2% | 47.1% | 51 | -1.8% |
| 3 | RSI Trend (>50) ✓ | Weekly | 2.7% | 0.51 | -14.5% | 47.5% | 61 | -1.8% |
| 4 | Rate of Change ✓ | Weekly | 2.7% | 0.51 | -14.0% | 49.3% | 69 | -1.8% |
| 5 | EMA 50/200 Cross ✓ | Daily | 2.7% | 0.46 | -21.8% | 52.6% | 19 | -1.9% |
| 6 | Donchian Midline ✓ | Daily | 2.2% | 0.46 | -13.9% | 39.2% | 309 | -2.4% |
| 7 | EMA-10 Trend ✓ | Weekly | 2.3% | 0.45 | -12.4% | 42.3% | 111 | -2.2% |
| 8 | Donchian Breakout ✓ | Daily | 1.8% | 0.44 | -11.0% | 39.6% | 101 | -2.8% |
| 9 | RSI Trend (>50) ✓ | Daily | 2.1% | 0.43 | -12.8% | 34.1% | 311 | -2.5% |
| 10 | Rate of Change ✓ | Daily | 2.1% | 0.43 | -17.4% | 41.1% | 355 | -2.6% |
| 11 | MACD ✓ | Weekly | 2.0% | 0.41 | -13.0% | 57.4% | 47 | -2.5% |
| 12 | Donchian Breakout ✓ | Weekly | 1.8% | 0.4 | -13.5% | 60.0% | 20 | -2.7% |
| 13 | Bollinger Breakout ✓ | Weekly | 1.5% | 0.39 | -10.9% | 52.4% | 21 | -3.0% |
| 14 | ADX / DMI ✓ | Weekly | 1.6% | 0.37 | -12.7% | 36.1% | 36 | -2.9% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Inv-Grade Corp (LQD), Donchian Midline on the weekly 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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