The best indicator for Textron (TXT)
We backtested 20 indicators across daily, weekly and hourly charts on real Textron (TXT) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Rate of Change
On the weekly chart, this is the strongest risk-adjusted edge we found for Textron (TXT) over ~53.5 years — trailing buy-and-hold by 0.3% 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 | Rate of Change ✓ | Weekly | 7.6% | 0.45 | -54.2% | 45.8% | 166 | -0.3% |
| 2 | EMA 50/200 Cross ✓ | Daily | 5.9% | 0.37 | -61.1% | 51.5% | 33 | -1.9% |
| 3 | Donchian Breakout ✓ | Weekly | 5.1% | 0.36 | -53.3% | 60.5% | 43 | -2.7% |
| 4 | EMA 20/50 Cross ✓ | Weekly | 5.2% | 0.34 | -60.8% | 47.6% | 21 | -2.6% |
| 5 | RSI Trend (>50) ✓ | Weekly | 4.9% | 0.34 | -51.2% | 42.3% | 149 | -2.9% |
| 6 | EMA 20/50 Cross ✓ | Daily | 4.9% | 0.33 | -59.8% | 38.5% | 135 | -2.9% |
| 7 | WaveTrend (8/6/4) ✓ | Weekly | 5.6% | 0.33 | -91.4% | 75.6% | 41 | -2.2% |
| 8 | MACD ✓ | Weekly | 5.2% | 0.32 | -81.3% | 50.5% | 105 | -2.6% |
| 9 | ADX / DMI | Weekly | 4.0% | 0.32 | -53.5% | 51.4% | 74 | -3.9% |
| 10 | Heikin-Ashi Trend ✓ | Daily | 4.7% | 0.31 | -79.7% | 44.7% | 2545 | -3.2% |
| 11 | EMA-10 Trend ✓ | Daily | 4.8% | 0.31 | -68.3% | 37.8% | 1192 | -3.1% |
| 12 | Donchian Midline ✓ | Weekly | 4.3% | 0.31 | -54.7% | 44.5% | 155 | -3.5% |
| 13 | SMA 50/200 Cross ✓ | Daily | 4.4% | 0.3 | -66.3% | 59.1% | 44 | -3.5% |
| 14 | RSI Trend (>50) ✓ | Daily | 3.5% | 0.26 | -54.8% | 37.2% | 759 | -4.3% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Textron (TXT), Rate of Change 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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