The best indicator for FTSE 100
We backtested 382 indicators across daily, weekly and hourly charts on real FTSE 100 history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
DeMarker
On the daily chart, this is the strongest risk-adjusted edge we found for FTSE 100 over ~42.5 years — trailing buy-and-hold by 0.9% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for FTSE 100 — trailing buy-and-hold by 3.7% 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 ✓ | Daily | 4.7% | 0.45 | -38.6% | 78.1% | 155 | -0.9% |
| 2 | Bollinger Mean-Reversion ✓ | Weekly | 3.3% | 0.41 | -23.9% | 82.9% | 35 | -2.3% |
| 3 | Fibonacci Bands ✓ | Weekly | 3.3% | 0.41 | -23.9% | 82.9% | 35 | -2.3% |
| 4 | McGinley 200 Trend ✓ | Daily | 4.5% | 0.4 | -35.9% | 27.4% | 84 | -1.1% |
| 5 | SMA 10/30 Cross ✓ | Weekly | 3.8% | 0.4 | -40.4% | 58.1% | 43 | -1.7% |
| 6 | Coppock Curve ✓ | Weekly | 3.7% | 0.38 | -33.8% | 57.1% | 49 | -1.9% |
| 7 | Zero-Lag MACD ✓ | Weekly | 3.6% | 0.38 | -28.3% | 52.9% | 189 | -1.9% |
| 8 | Markov Regime ✓ | Daily | 5.1% | 0.38 | -52.6% | 57.7% | 26 | -0.6% |
| 9 | Zero-Lag MACD ✓ | Weekly | 3.6% | 0.38 | -28.3% | 52.9% | 189 | -1.9% |
| 10 | Intraday Momentum Index ✓ | Daily | 3.9% | 0.37 | -40.0% | 77.5% | 120 | -1.7% |
| 11 | Ehlers Roofing Filter ✓ | Weekly | 3.3% | 0.37 | -39.3% | 55.8% | 43 | -2.2% |
| 12 | Momentum (50) ✓ | Weekly | 3.7% | 0.37 | -40.8% | 59.6% | 52 | -1.9% |
| 13 | Connors RSI-2 ✓ | Weekly | 3.3% | 0.36 | -32.7% | 67.7% | 99 | -2.3% |
| 14 | Supertrend Fast (10,2) ✓ | Weekly | 3.2% | 0.35 | -38.4% | 48.3% | 58 | -2.3% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For FTSE 100, DeMarker on the daily 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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