The best indicator for Materials (XLB)
We backtested 382 indicators across daily, weekly and hourly charts on real Materials (XLB) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Detrended Price Osc.
On the weekly chart, this is the strongest risk-adjusted edge we found for Materials (XLB) over ~27.6 years — trailing buy-and-hold by 0.5% CAGR.
Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for Materials (XLB) — trailing buy-and-hold by 6.6% 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 | Detrended Price Osc. ✓ | Weekly | 7.6% | 0.53 | -33.8% | 58.5% | 159 | -0.5% |
| 2 | Hull MA 20/80 Cross ✓ | Weekly | 6.4% | 0.53 | -24.5% | 68.6% | 35 | -1.7% |
| 3 | TEMA 20/50 Cross ✓ | Weekly | 5.4% | 0.49 | -28.0% | 64.5% | 31 | -2.7% |
| 4 | Chande Kroll Stop ✓ | Weekly | 7.7% | 0.49 | -40.6% | 47.0% | 66 | -0.4% |
| 5 | T3 20/80 Cross ✓ | Daily | 5.7% | 0.46 | -26.8% | 60.0% | 40 | -2.5% |
| 6 | Demand Index ✓ | Weekly | 6.7% | 0.46 | -55.4% | 79.2% | 77 | -1.4% |
| 7 | Intraday Momentum Index ✓ | Daily | 6.2% | 0.43 | -58.7% | 77.4% | 84 | -2.1% |
| 8 | Center of Gravity ✓ | Weekly | 5.1% | 0.43 | -28.6% | 54.2% | 177 | -3.0% |
| 9 | QQE ✓ | Weekly | 6.7% | 0.42 | -49.3% | 55.0% | 80 | -1.4% |
| 10 | Andean Oscillator ✓ | Weekly | 4.8% | 0.42 | -29.5% | 65.5% | 29 | -3.3% |
| 11 | Chande-Kroll Stop (fast) ✓ | Daily | 6.3% | 0.41 | -46.4% | 42.4% | 490 | -2.0% |
| 12 | Connors RSI ✓ | Weekly | 5.1% | 0.41 | -49.1% | 78.3% | 69 | -3.0% |
| 13 | Hull MA 200 Trend ✓ | Weekly | 4.1% | 0.4 | -30.4% | 55.2% | 29 | -4.0% |
| 14 | SMC: Liquidity Sweep ✓ | Daily | 5.7% | 0.4 | -53.6% | 79.6% | 93 | -2.6% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Materials (XLB), Detrended Price Osc. 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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