Volume & money flow · daily rule · Software & devices
Money Flow Index on Descartes Systems
DSG with the play, last two years
Shading shows the play's call from the close that triggered it.
Money Flow Index (14)
Dashed lines at 20, 80.
Growth of C$10,000 since 2005
Log scale. After trading costs, with T-bill interest while out.
The record
The play against buying and holding DSG over exactly the same dates, after costs.
| Play, since 2005 | Hold, since 2005 | Play, 5 yrs | Hold, 5 yrs | |
|---|---|---|---|---|
| Annual return | +6.3% | +20.4% | +0.8% | +3.1% |
| Total return | +273% | +5,519% | +4% | +16% |
| Worst drawdown | −42.4% | −50.9% | −42.4% | −50.9% |
| Volatility | 20.9% | 31.0% | 23.1% | 31.3% |
| Sharpe ratio | 0.31 | 0.70 | −0.02 | 0.13 |
| Time invested | 33% | 100% | ||
| Switches per year | 2.7 | 0 |
Every call, graded
Right on 30 of 60 closed calls (50%). In calls averaged +5.5%; out calls saw DSG move +10.8% on average.
| Called | Call | Price | Until | DSG moved | Result |
|---|---|---|---|---|---|
| Sep 10, 2026 | OUT | C$98.55 | now | +22.6% | open |
| Aug 19, 2025 | IN | C$136.96 | Sep 10, 2026 | −28.0% | ✕ wrong |
| May 28, 2024 | OUT | C$135.27 | Aug 19, 2025 | +1.2% | ✕ wrong |
| Apr 4, 2024 | IN | C$120.87 | May 28, 2024 | +11.9% | ✓ right |
| Jan 31, 2024 | OUT | C$117.72 | Apr 4, 2024 | +2.7% | ✕ wrong |
| Jan 8, 2024 | IN | C$108.55 | Jan 31, 2024 | +8.4% | ✓ right |
| Oct 16, 2023 | OUT | C$100.64 | Jan 8, 2024 | +7.9% | ✕ wrong |
| Jun 12, 2023 | IN | C$99.52 | Oct 16, 2023 | +1.1% | ✓ right |
| Aug 17, 2022 | OUT | C$92.51 | Jun 12, 2023 | +7.6% | ✕ wrong |
| Jan 24, 2022 | IN | C$87.70 | Aug 17, 2022 | +5.5% | ✓ right |
| Jan 27, 2021 | OUT | C$79.81 | Jan 24, 2022 | +9.9% | ✕ wrong |
| Sep 21, 2020 | IN | C$69.28 | Jan 27, 2021 | +15.2% | ✓ right |
An in call is right when the price rose before the next call; an out call is right when it fell. The latest 12 of 61 calls shown.
How the play works
- In when the 14-day MFI crosses up through 20.
- Out when it crosses down through 80.
The creators also stress divergences, which this rule ignores.
The case against
Valeriy Zakamulin tested moving-average timing on up to 155 years of U.S. stock data and found no statistically significant edge in the second half of that record. The rules earned their keep in a few severe bear markets and lagged buy and hold for long stretches in between.