Aroon strategy — on every asset
Aroon measures how recently the highest high and the lowest low occurred over a lookback window: Aroon Up sits near 100 just after a new high and decays toward 0 as that high ages, and Aroon Down does the same for new lows. This rule goes long while Aroon Up is above Aroon Down — the more recent extreme is a high — and steps aside when Aroon Down takes the lead. It reads the age of the recent extremes, not a prediction of a turn; like any crossover rule it lags turns and whipsaws when highs and lows alternate in a sideways, range-bound market.
Through a sustained one-way move — By construction it holds while Aroon Up leads Aroon Down and re-decides only when the two lines cross, tracking which extreme printed more recently.
In a choppy, sideways range — In a sideways range fresh highs and lows alternate, so the two lines cross back and forth — it whipsaws in and out, and reading the age of past extremes lags every real turn by design.
Whether that behaviour produced excess return on your asset over your window is exactly what your backtest measures — we publish no profit claims.
How it works — step by step
- • Entry — Go long while Aroon Up is above Aroon Down (the more recent extreme is a high).
- • Exit — Go flat when Aroon Down rises above Aroon Up (the more recent extreme is a low).
- • Fills, scoring & data — Every backtest fills at the next real open and scores on the real price against a real buy-and-hold, never a smoothed or derived series.
Most of these did not beat buy & hold — but a real few did, and finding out which is the whole point. This one strategy was tested on 47 different assets. With that many attempts, some will beat buy & hold by chance alone — which is why these are listed neutrally, not ranked by which ones came out ahead. To see whether any single result survives scrutiny, run the out-of-sample, walk-forward and multiple-testing checks on its backtest.
Of the 47 with enough data to judge, 13 beat buy & hold. Results are simulated backtests over the last ~5 years (less for younger assets), shown whole — losses included — not live or future performance. These are famous names that still trade today. Companies that delisted or went bankrupt aren't in the set (survivorship bias) — and that history isn't available from the free public data this tool runs on — so this rate isn't a representative base rate for every stock that has ever traded.
Listed in a neutral catalog order — not ranked by performance. Combinations we can't judge yet — too little data — are grouped separately below.
Here, “beat” means only a higher total return than buy & hold over this one past window — not risk-adjusted, not luck-checked. The out-of-sample, walk-forward and luck checks live on each individual backtest.
Past performance is not a reliable indicator of future results. This is an educational, analytical tool — not investment advice, and not a recommendation to buy or sell anything. You make all decisions and execute on your own broker.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
On the 47 assets with enough data to judge, the same rule swung from +324 pts vs buy & hold on Solana to -463 pts on Broadcom. The typical (median) result was -35.4 pts — and even across these runs, the deepest drawdown you'd have sat through was -88% on Litecoin.
That range is the whole point: one rule is not universally good or bad — it depends entirely on the asset, and with 47 tried, some beat by chance. Shown to reveal the variation, not to pick one to trade.
Aroon on stocks
Aroon on etfs
Aroon on commodities
Aroon on crypto
Backtesting is one stage of preparing to trade, not the finish line. The full discipline runs five: Understand, Test, Stress-test, Forward-test, then Decide — eyes open. Most ideas should die in the first three, and every stage is a place to stop, for free — but the rare idea that survives all five is a real edge you can finally trust with money.