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Finaxion Research · Bounce off the lower Bollinger band · single stocks · Recomputed 2026-09-10

Does Bounce off the lower Bollinger band work on COF?

Bounce off the lower Bollinger band does not beat buy-and-hold on COF: -12.2 points a year over 32 years.

Total return
55.3%
Buy and hold
×58
CAGR
1.4%
Sharpe
0.03
Max drawdown
-83.3%
Trades
268
Out of sample
overfit
Years
32
1×10×61×19951998200120042007201020132016201920222025
StrategyCOF

Findings

  1. Bounce off the lower Bollinger band does not beat buy-and-hold on COF: -12.2 points a year over 32 years.
  2. Against the S&P 500 over the same window: -9.7 points a year.
  3. Total return +55.3% versus ×58 for buy-and-hold, with 268 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -83.3%.
  6. It beats in neither half of the history (split at 2010).
  7. It ranks #133 of 235 markets for this strategy by annual excess over the S&P 500.

Findings derived from the full panel. Each carries its number and its denominator; the computations are reproducible with artifact 30497848a621.

Exactly what was tested

Close crosses back above the lower band (20, 2σ) after piercing it → entry. Close reaches the 20-day mean → exit.

How to read it

The verdict compares the strategy with buying and holding COF over the same window, with round-trip costs per asset class. “Out of sample” is walk-forward: the rule is fit on one stretch and judged on the next. A result that beats in the full sample but not out of it is overfit. Full methodology in the protocol. How we test.

Open this backtest with its trades   Trades (CSV)

Every strategy on COF → · Full page for Bounce off the lower Bollinger band →

How to cite

Finaxion Research (2026). Does Bounce off the lower Bollinger band work on COF?. Daily backtest 1962-01-01–2026-08-31, artifact 30497848a621. https://finaxion.app/en/research/bollinger-bounce/cof

Not a recommendation. Past performance does not guarantee future results.