The best indicator for Health Care (VHT)
We backtested 366 indicators across daily, weekly and hourly charts on real Health Care (VHT) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Stochastic
On the weekly chart, this is the strongest risk-adjusted edge we found for Health Care (VHT) over ~22.4 years — trailing buy-and-hold by 4.1% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for Health Care (VHT) — trailing buy-and-hold by 6.4% 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 | Stochastic ✓ | Weekly | 5.4% | 0.76 | -13.5% | 100.0% | 20 | -4.1% |
| 2 | Order-Flow Reversion ✓ | Weekly | 5.9% | 0.73 | -13.5% | 89.5% | 19 | -3.6% |
| 3 | Markov Regime ✓ | Weekly | 9.5% | 0.67 | -25.6% | 43.8% | 16 | -0.0% |
| 4 | Negative Volume Index ✓ | Daily | 8.4% | 0.66 | -28.9% | 60.0% | 25 | -1.1% |
| 5 | McGinley 200 Trend ✓ | Daily | 8.9% | 0.64 | -28.9% | 25.0% | 28 | -0.7% |
| 6 | Detrended Price Osc. ✓ | Weekly | 7.2% | 0.64 | -25.6% | 57.2% | 138 | -2.3% |
| 7 | Zero-Lag LSMA ✓ | Weekly | 6.1% | 0.64 | -21.2% | 58.6% | 87 | -3.4% |
| 8 | McGinley 30 Trend ✓ | Weekly | 7.8% | 0.62 | -23.9% | 42.9% | 21 | -1.7% |
| 9 | DEMA 20/50 Cross ✓ | Daily | 5.5% | 0.61 | -15.3% | 49.0% | 98 | -4.0% |
| 10 | On-Balance Volume ✓ | Weekly | 6.5% | 0.6 | -19.0% | 52.1% | 73 | -3.0% |
| 11 | Bollinger Mean-Reversion ✓ | Weekly | 4.9% | 0.59 | -13.5% | 88.9% | 18 | -4.6% |
| 12 | Chande Momentum Osc. ✓ | Weekly | 5.9% | 0.59 | -18.6% | 48.0% | 75 | -3.6% |
| 13 | Fibonacci Bands ✓ | Weekly | 4.9% | 0.59 | -13.5% | 88.9% | 18 | -4.6% |
| 14 | Vortex (7) ✓ | Weekly | 6.0% | 0.59 | -20.4% | 64.4% | 73 | -3.5% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Health Care (VHT), Stochastic on the weekly 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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