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Finaxion Research · Stochastic: oversold cross (14, 3) · single stocks · Recomputed 2026-09-10

Does Stochastic: oversold cross (14, 3) work on BXP?

Stochastic: oversold cross (14, 3) does not beat buy-and-hold on BXP: -2.4 points a year over 29 years.

Total return
406.1%
Buy and hold
888.9%
CAGR
5.7%
Sharpe
0.18
Max drawdown
-55.2%
Trades
412
Out of sample
partly
Years
29
1×8.1×1998200120042007201020132016201920222025
StrategyBXP

Findings

  1. Stochastic: oversold cross (14, 3) does not beat buy-and-hold on BXP: -2.4 points a year over 29 years.
  2. Against the S&P 500 over the same window: -3.8 points a year.
  3. Total return +406.1% versus +888.9% for buy-and-hold, with 412 trades.
  4. The result holds only partly out of sample.
  5. Maximum drawdown -55.2%.
  6. It did not beat before 2012 and started afterwards.
  7. It ranks #65 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 f4bff284709b.

Exactly what was tested

%K(14) crosses above %D(3) in the oversold zone → entry. Held until %K exceeds 80 → exit.

How to read it

The verdict compares the strategy with buying and holding BXP 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 BXP → · Full page for Stochastic: oversold cross (14, 3) →

How to cite

Finaxion Research (2026). Does Stochastic: oversold cross (14, 3) work on BXP?. Daily backtest 1962-01-01–2026-08-31, artifact f4bff284709b. https://finaxion.app/en/research/stochastic-oscillator/bxp

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