The best indicator for Biotech (XBI)
We backtested 382 indicators across daily, weekly and hourly charts on real Biotech (XBI) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Lorentzian Classification
On the weekly chart, this is the strongest risk-adjusted edge we found for Biotech (XBI) over ~20.4 years — beating buy-and-hold by 0.4% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for Biotech (XBI) — trailing buy-and-hold by 5.4% 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 | Lorentzian Classification ✓ | Weekly | 11.3% | 0.57 | -44.1% | 59.3% | 177 | 0.4% |
| 2 | Chande Momentum Osc. ✓ | Weekly | 9.0% | 0.53 | -35.5% | 52.8% | 72 | -1.9% |
| 3 | Least Squares MA ✓ | Weekly | 8.7% | 0.53 | -46.0% | 54.3% | 81 | -2.1% |
| 4 | SMA 20/80 Cross ✓ | Daily | 9.0% | 0.52 | -37.5% | 57.9% | 38 | -2.0% |
| 5 | Supertrend Fast (10,2) ✓ | Weekly | 8.5% | 0.52 | -30.5% | 52.0% | 25 | -2.3% |
| 6 | Connors RSI ✓ | Weekly | 7.7% | 0.52 | -28.9% | 72.9% | 48 | -3.2% |
| 7 | Demand Index ✓ | Weekly | 9.5% | 0.52 | -49.4% | 73.1% | 52 | -1.3% |
| 8 | Supertrend (7,2) ✓ | Weekly | 8.5% | 0.52 | -26.5% | 56.0% | 25 | -2.4% |
| 9 | Supertrend (10,2) ✓ | Weekly | 8.5% | 0.52 | -30.5% | 52.0% | 25 | -2.3% |
| 10 | Negative Volume Index ✓ | Daily | 10.3% | 0.51 | -62.2% | 45.5% | 33 | -0.6% |
| 11 | TEMA 20/50 Cross ✓ | Weekly | 8.2% | 0.51 | -29.3% | 63.2% | 19 | -2.6% |
| 12 | PMax ✓ | Daily | 8.5% | 0.51 | -42.0% | 67.9% | 28 | -2.5% |
| 13 | CCI ✓ | Daily | 8.5% | 0.5 | -36.0% | 68.0% | 103 | -2.4% |
| 14 | T3 10/40 Cross ✓ | Daily | 8.4% | 0.5 | -45.2% | 57.6% | 59 | -2.6% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Biotech (XBI), Lorentzian Classification 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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