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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 FIX?

Stochastic: oversold cross (14, 3) does not beat buy-and-hold on FIX: -13.7 points a year over 29 years.

Total return
225.9%
Buy and hold
×121
CAGR
4.1%
Sharpe
0.17
Max drawdown
-86.4%
Trades
393
Out of sample
overfit
Years
29
1×10×100×1998200120042007201020132016201920222025
StrategyFIX

Findings

  1. Stochastic: oversold cross (14, 3) does not beat buy-and-hold on FIX: -13.7 points a year over 29 years.
  2. Against the S&P 500 over the same window: -5.4 points a year.
  3. Total return +225.9% versus ×121 for buy-and-hold, with 393 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -86.4%.
  6. It beats in neither half of the history (split at 2012).
  7. It ranks #96 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 FIX 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 FIX → · Full page for Stochastic: oversold cross (14, 3) →

How to cite

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

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