The best indicator for Dow Jones (DJI)
We backtested 382 indicators across daily, weekly and hourly charts on real Dow Jones (DJI) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
DeMarker
On the 4-hour chart, this is the strongest risk-adjusted edge we found for Dow Jones (DJI) over ~3.9 years — trailing buy-and-hold by 3.2% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for Dow Jones (DJI) — trailing buy-and-hold by 3.3% 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 | DeMarker ✓ | 4-Hour | 7.7% | 1.17 | -10.6% | 84.6% | 26 | -3.2% |
| 2 | EMA 100 Trend ✓ | 4-Hour | 9.1% | 1.14 | -6.2% | 47.8% | 23 | -1.8% |
| 3 | Disparity (100) ✓ | 4-Hour | 9.1% | 1.14 | -6.2% | 47.8% | 23 | -1.8% |
| 4 | CCI (100) ✓ | 4-Hour | 8.8% | 1.12 | -6.7% | 40.0% | 20 | -2.1% |
| 5 | RSI (50) ✓ | 4-Hour | 8.7% | 1.08 | -6.2% | 48.0% | 25 | -2.2% |
| 6 | EMA 13/48 Cross ✓ | 4-Hour | 7.8% | 1.02 | -6.8% | 60.0% | 15 | -3.0% |
| 7 | WMA 200 Trend ✓ | 4-Hour | 7.5% | 0.99 | -6.9% | 44.4% | 18 | -3.3% |
| 8 | KAMA 200 Trend ✓ | 4-Hour | 7.7% | 0.98 | -6.1% | 29.6% | 27 | -3.1% |
| 9 | Ichimoku Cloud ✓ | 4-Hour | 7.0% | 0.97 | -7.0% | 41.9% | 31 | -3.8% |
| 10 | McGinley 30 Trend ✓ | 4-Hour | 7.3% | 0.94 | -7.5% | 53.2% | 47 | -3.6% |
| 11 | TRIX (15) ✓ | 4-Hour | 6.9% | 0.93 | -7.2% | 61.1% | 18 | -3.9% |
| 12 | SMC: Change of Character ✓ | 4-Hour | 7.1% | 0.92 | -8.4% | 70.6% | 17 | -3.7% |
| 13 | McGinley 100 Trend ✓ | 1-Hour | 11.7% | 1.23 | -5.9% | 30.2% | 53 | -3.2% |
| 14 | MAMA / FAMA ✓ | 4-Hour | 6.5% | 0.91 | -7.3% | 48.5% | 33 | -4.4% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Dow Jones (DJI), DeMarker on the 4-hour 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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