The research was conducted by Gerritsen et al. Notably, the trading range breakout rule emerged as a promising strategy, often outperforming the traditional buy-and-hold approach.
The core aim of this study is to examine the profitability of technical trading rules, specifically to determine if these rules can surpass a basic buy-and-hold strategy.
Notably, the trading range breakout (TRB) rule consistently offers higher Sharpe ratios than a buy-and-hold strategy, signifying its superior performance.