The best indicator for Lam Research (LRCX)
We backtested 20 indicators across daily, weekly and hourly charts on real Lam Research (LRCX) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
MACD
On the weekly chart, this is the strongest risk-adjusted edge we found for Lam Research (LRCX) over ~42.2 years — trailing buy-and-hold by 0.5% 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 | MACD ✓ | Weekly | 18.6% | 0.63 | -56.0% | 43.8% | 80 | -0.5% |
| 2 | EMA 20/50 Cross ✓ | Daily | 15.3% | 0.56 | -77.9% | 39.4% | 94 | -3.8% |
| 3 | Bollinger Breakout ✓ | Weekly | 12.6% | 0.55 | -58.1% | 47.6% | 42 | -6.5% |
| 4 | Donchian Midline ✓ | Weekly | 15.0% | 0.55 | -69.7% | 48.6% | 107 | -4.1% |
| 5 | EMA 50/200 Cross ✓ | Daily | 14.1% | 0.53 | -81.6% | 44.0% | 25 | -5.0% |
| 6 | ADX / DMI ✓ | Weekly | 13.2% | 0.53 | -79.5% | 55.7% | 61 | -5.9% |
| 7 | SMA 50/200 Cross ✓ | Daily | 13.8% | 0.52 | -87.5% | 46.4% | 28 | -5.4% |
| 8 | RSI Trend (>50) ✓ | Weekly | 13.2% | 0.52 | -85.8% | 50.0% | 112 | -5.8% |
| 9 | Rate of Change ✓ | Weekly | 13.3% | 0.51 | -75.2% | 47.4% | 137 | -5.8% |
| 10 | Donchian Breakout ✓ | Weekly | 10.8% | 0.47 | -87.5% | 43.8% | 32 | -8.3% |
| 11 | EMA 20/50 Cross ✓ | Weekly | 9.5% | 0.43 | -89.1% | 47.8% | 23 | -9.6% |
| 12 | WaveTrend (8/6/4) ✓ | Daily | 7.9% | 0.39 | -85.7% | 67.1% | 155 | -11.3% |
| 13 | Bollinger Mean-Reversion ✓ | Daily | 6.9% | 0.37 | -87.2% | 63.9% | 158 | -12.2% |
| 14 | EMA-10 Trend ✓ | Weekly | 6.8% | 0.36 | -87.6% | 49.3% | 207 | -12.3% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Lam Research (LRCX), MACD 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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