The best indicator for Williams-Sonoma, Inc. (WSM)
We backtested 20 indicators across daily, weekly and hourly charts on real Williams-Sonoma, Inc. (WSM) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
WaveTrend (8/6/4)
On the weekly chart, this is the strongest risk-adjusted edge we found for Williams-Sonoma, Inc. (WSM) over ~43.1 years — trailing buy-and-hold by 4.2% 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 | WaveTrend (8/6/4) ✓ | Weekly | 11.9% | 0.51 | -83.5% | 78.0% | 41 | -4.2% |
| 2 | EMA 20/50 Cross ✓ | Daily | 10.9% | 0.48 | -73.0% | 40.6% | 101 | -5.2% |
| 3 | MACD ✓ | Weekly | 10.5% | 0.48 | -62.0% | 43.8% | 89 | -5.6% |
| 4 | EMA 20/50 Cross ✓ | Weekly | 10.8% | 0.47 | -82.5% | 68.8% | 16 | -5.3% |
| 5 | CCI ✓ | Weekly | 10.1% | 0.47 | -80.3% | 87.0% | 46 | -6.1% |
| 6 | Rate of Change ✓ | Weekly | 10.0% | 0.46 | -57.6% | 46.9% | 130 | -6.1% |
| 7 | Donchian Midline ✓ | Weekly | 10.0% | 0.46 | -70.4% | 43.1% | 116 | -6.1% |
| 8 | ADX / DMI ✓ | Weekly | 8.9% | 0.44 | -69.4% | 52.6% | 57 | -7.2% |
| 9 | RSI Trend (>50) ✓ | Weekly | 8.3% | 0.41 | -72.7% | 46.7% | 120 | -7.9% |
| 10 | EMA 50/200 Cross ✓ | Daily | 8.0% | 0.4 | -85.9% | 41.9% | 31 | -8.2% |
| 11 | Stochastic ✓ | Weekly | 7.6% | 0.39 | -82.1% | 70.6% | 51 | -8.5% |
| 12 | SMA 50/200 Cross ✓ | Daily | 7.3% | 0.38 | -87.6% | 36.4% | 33 | -8.9% |
| 13 | CCI ✓ | Daily | 7.1% | 0.37 | -68.1% | 70.5% | 207 | -9.1% |
| 14 | Williams %R ✓ | Weekly | 6.8% | 0.37 | -79.6% | 73.4% | 64 | -9.3% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Williams-Sonoma, Inc. (WSM), WaveTrend (8/6/4) 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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