The best indicator for Communications (XLC)
We backtested 20 indicators across daily, weekly and hourly charts on real Communications (XLC) 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 Communications (XLC) over ~8.0 years — beating buy-and-hold by 1.7% 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 | 13.1% | 1.01 | -14.5% | 47.4% | 19 | 1.7% |
| 2 | Donchian Midline ✓ | Weekly | 16.2% | 1.17 | -10.9% | 63.6% | 11 | 4.7% |
| 3 | EMA-10 Trend ✓ | Weekly | 10.7% | 0.83 | -13.8% | 54.5% | 33 | -0.8% |
| 4 | EMA 20/50 Cross ✓ | Daily | 12.7% | 0.92 | -17.2% | 50.0% | 12 | 0.9% |
| 5 | Donchian Midline ✓ | Daily | 8.9% | 0.69 | -25.9% | 42.7% | 96 | -2.8% |
| 6 | RSI Trend (>50) ✓ | Weekly | 15.3% | 1.1 | -10.9% | 77.8% | 9 | 3.8% |
| 7 | ADX / DMI ✓ | Weekly | 12.0% | 0.92 | -17.9% | 70.0% | 10 | 0.6% |
| 8 | MACD ✓ | Weekly | 7.0% | 0.61 | -21.3% | 62.5% | 16 | -4.4% |
| 9 | RSI Trend (>50) ✓ | Daily | 6.8% | 0.54 | -34.4% | 41.8% | 91 | -4.9% |
| 10 | Rate of Change ✓ | Daily | 6.0% | 0.49 | -35.9% | 43.8% | 121 | -5.7% |
| 11 | MACD ✓ | Daily | 5.1% | 0.43 | -33.8% | 47.1% | 70 | -6.6% |
| 12 | Williams %R ✓ | Daily | 5.1% | 0.39 | -25.0% | 70.0% | 50 | -6.6% |
| 13 | Bollinger Mean-Reversion ✓ | Daily | 4.4% | 0.37 | -23.9% | 78.1% | 32 | -7.3% |
| 14 | Donchian Breakout ✓ | Daily | 3.4% | 0.33 | -34.2% | 51.5% | 33 | -8.3% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Communications (XLC), Rate of Change on the weekly timeframe gave the best balance of return and risk in our test. It beat buy-and-hold — 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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