The best indicator for Health Care (VHT)
We backtested 20 indicators across daily, weekly and hourly charts on real Health Care (VHT) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Stochastic
On the weekly chart, this is the strongest risk-adjusted edge we found for Health Care (VHT) over ~22.4 years — trailing buy-and-hold by 4.5% 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 | Stochastic ✓ | Weekly | 5.0% | 0.79 | -10.2% | 90.0% | 20 | -4.5% |
| 2 | Bollinger Mean-Reversion ✓ | Weekly | 4.9% | 0.59 | -13.5% | 88.9% | 18 | -4.6% |
| 3 | Bollinger Breakout ✓ | Weekly | 4.1% | 0.56 | -13.3% | 66.7% | 18 | -5.4% |
| 4 | Donchian Breakout ✓ | Weekly | 5.2% | 0.55 | -25.7% | 66.7% | 18 | -4.3% |
| 5 | Money Flow Index ✓ | Daily | 4.6% | 0.5 | -25.5% | 81.8% | 22 | -5.0% |
| 6 | Williams %R ✓ | Weekly | 4.6% | 0.5 | -21.9% | 87.1% | 31 | -4.9% |
| 7 | SMA 50/200 Cross ✓ | Daily | 5.4% | 0.47 | -28.9% | 66.7% | 15 | -4.1% |
| 8 | CCI ✓ | Weekly | 3.9% | 0.47 | -19.1% | 85.0% | 20 | -5.6% |
| 9 | EMA 20/50 Cross ✓ | Daily | 4.6% | 0.46 | -28.1% | 43.1% | 51 | -5.0% |
| 10 | Holy Grail Confluence ✓ | Daily | 4.6% | 0.45 | -25.5% | 87.5% | 32 | -5.0% |
| 11 | Stochastic ✓ | Daily | 4.2% | 0.42 | -27.7% | 70.4% | 108 | -5.3% |
| 12 | RSI Trend (>50) ✓ | Weekly | 4.3% | 0.42 | -24.9% | 48.3% | 60 | -5.2% |
| 13 | Donchian Breakout ✓ | Daily | 3.2% | 0.41 | -21.9% | 52.0% | 98 | -6.3% |
| 14 | Donchian Midline ✓ | Weekly | 4.2% | 0.41 | -30.7% | 55.6% | 54 | -5.3% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Health Care (VHT), Stochastic 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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