The best indicator for EUR/GBP
We backtested 366 indicators across daily, weekly and hourly charts on real EUR/GBP history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Fibonacci Pivots
On the weekly chart, this is the strongest risk-adjusted edge we found for EUR/GBP over ~27.5 years — beating buy-and-hold by 2.7% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for EUR/GBP — beating buy-and-hold by 2.4% CAGR, out-of-sample. Fewer, higher-conviction trades than any single indicator.
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 | Fibonacci Pivots ✓ | Weekly | 3.5% | 0.57 | -8.0% | 51.6% | 244 | 2.7% |
| 2 | DMI Direction ✓ | Daily | 3.5% | 0.56 | -14.5% | 19.8% | 333 | 2.8% |
| 3 | Fisher Transform ✓ | Daily | 3.2% | 0.55 | -35.8% | 31.5% | 682 | 2.5% |
| 4 | Pivot Points (Standard) ✓ | Weekly | 3.3% | 0.55 | -7.4% | 51.4% | 216 | 2.5% |
| 5 | Parabolic SAR (fast) ✓ | Daily | 2.8% | 0.5 | -32.0% | 31.6% | 545 | 2.2% |
| 6 | Keltner Mean-Reversion ✓ | Daily | 1.2% | 0.47 | -8.6% | 69.2% | 52 | 0.6% |
| 7 | Murrey Math Lines ✓ | Daily | 2.2% | 0.47 | -12.4% | 78.3% | 106 | 1.5% |
| 8 | Projection Bands ✓ | Weekly | 2.7% | 0.47 | -14.6% | 57.8% | 64 | 1.9% |
| 9 | Bollinger Mean-Reversion ✓ | Weekly | 1.9% | 0.38 | -10.9% | 54.8% | 31 | 1.2% |
| 10 | Fibonacci Bands ✓ | Weekly | 1.9% | 0.38 | -10.9% | 54.8% | 31 | 1.2% |
| 11 | Camarilla Pivots ✓ | Weekly | 2.2% | 0.37 | -14.0% | 46.7% | 317 | 1.4% |
| 12 | DeMarker (7) ✓ | Daily | 1.8% | 0.34 | -24.4% | 27.9% | 502 | 1.1% |
| 13 | Parabolic SAR ✓ | Daily | 1.8% | 0.32 | -21.3% | 32.0% | 347 | 1.1% |
| 14 | Stochastic Momentum Index ✓ | Daily | 1.3% | 0.31 | -20.6% | 62.4% | 125 | 0.7% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For EUR/GBP, Fibonacci Pivots 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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