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The best indicator for AUD/USD

We backtested 382 indicators across daily, weekly and hourly charts on real AUD/USD history. Here's what actually worked — risk-adjusted over the full backtest, with costs, and checked out-of-sample.

Signaling SHORT right now — its only tested short edge (DMI Direction) is signaling short — a rare case where shorting this beat staying flat (+7.9% CAGR). Signal computed on 2026-10-23, 3 days behind the price data on this page (it is rebuilt on a separate schedule).
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Key levels · as of 2026-10-26

Where AUD/USD stands

0.7034
last daily close (2026-10-26)
0.7051
200-day simple moving average price 0.2% below
0.7075
50-day simple moving average price 0.6% below
0.6449–0.7255
52-week range

Computed from our own daily OHLCV history, not quoted from a third party. Moving averages use closing prices; "52-week" is the last 252 trading sessions.

Trend · Daily

DMI Direction

On the daily chart, this is the strongest risk-adjusted edge we found for AUD/USD over ~21.0 years — beating buy-and-hold by 8.9% CAGR.

8.4%
CAGR
1.12
Sharpe
-11.1%
Max DD
28.2%
Win rate
0.84
Profit factor
+8.9%
vs Buy&Hold
Chart

AUD/USD on the daily chart

The timeframe our backtest found best for this asset. The chart is live market data; the results above are hypothetical and historical.

Chart by TradingView. Loading it contacts tradingview.com, which may set its own cookies — see our privacy policy.

NOTHING BEAT BUY-AND-HOLD
Full strategy report — every setup ranked out-of-sample, corrected for data-mining, and forward-tracked in public.
Read the verdict
Confluence · Daily

Best multi-indicator combo

Fisher TransformVortex

Going long only when all 2 agree was the strongest confluence setup we found for AUD/USD — beating buy-and-hold by 6.3% CAGR, out-of-sample. Fewer, higher-conviction trades than any single indicator.

5.9%
CAGR
1.04
Sharpe
38.8%
Win rate
399
Trades
+6.3%
vs Buy&Hold
Best by timeframe

The winner on each chart

Daily
DMI Direction
+8.9% · Sharpe 1.12
Weekly
Laguerre RSI
+1.9% · Sharpe 0.35
Full results

Every indicator, ranked

Ranked by Sharpe (risk-adjusted return). Hypothetical, fees included.

#IndicatorTFCAGRSharpeMax DDWinTradesvs B&H
1DMI Direction ✓Daily8.4%1.12-11.1%28.2%2598.9%
2Fisher Transform ✓Daily8.7%1.08-21.7%38.9%5279.1%
3Parabolic SAR (fast) ✓Daily7.6%0.97-28.6%38.7%3988.1%
4DeMarker (7) ✓Daily5.7%0.77-30.0%34.4%3876.2%
5Woodies CCI ✓Daily4.7%0.71-14.5%35.4%4415.2%
6DeMarker (21) ✓Daily4.8%0.66-11.3%29.9%2215.3%
7Parabolic SAR ✓Daily5.0%0.65-32.7%38.1%2575.4%
8DeMarker (14) ✓Daily4.5%0.61-28.3%36.4%2725.0%
9ADXR ✓Daily3.2%0.58-15.1%33.8%1393.6%
10Vortex (7) ✓Daily4.2%0.57-28.6%33.2%3804.7%
11SMC: Fair Value Gap ✓Daily4.3%0.57-22.2%41.1%2634.7%
12ADX / DMI ✓Daily2.9%0.52-18.0%32.2%1183.3%
13Vortex ✓Daily3.3%0.46-21.2%35.1%2653.8%
14Impulse MACD ✓Daily2.2%0.45-8.8%32.8%2872.6%

✓ = held up out-of-sample. Hypothetical, costs included. See methodology.

The leverage question

What it would take to beat buy & hold on AUD/USD

50 of 1264 tested setups beat buy-and-hold on AUD/USD outright. Another 76 could get there with leverage they would survive — but 23 would be liquidated by their own drawdown before they caught it.

IndicatorBeats B&H unlevered Leverage neededLeverage survived
DeMarker (21)11.11×8.75×
Projection Bands11.11×8.36×
Murrey Math Lines11.61×21.74×
Woodies CCI11.67×6.54×
Connors RSI-213.0×11.17×
Bollinger Mean-Reversion13.22×7.94×

Out-of-sample, costs included. A setup is only listed if the leverage it needs is less than the leverage its own worst drawdown survives — when it isn't, no amount of leverage gets there. Volatility drag isn't modelled, so these are the optimistic case. Every indicator, ranked this way

What this means

For AUD/USD, DMI Direction on the daily 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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