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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 NFLX?

Stochastic: oversold cross (14, 3) does not beat buy-and-hold on NFLX: -21.5 points a year over 24 years.

Total return
755.7%
Buy and hold
×677
CAGR
9.3%
Sharpe
0.32
Max drawdown
-79.8%
Trades
318
Out of sample
partly
Years
24
1×10×100×1000×200320052007200920112013201520172019202120232025
StrategyNFLX

Findings

  1. Stochastic: oversold cross (14, 3) does not beat buy-and-hold on NFLX: -21.5 points a year over 24 years.
  2. Against the S&P 500 over the same window: -1.1 points a year.
  3. Total return +755.7% versus ×677 for buy-and-hold, with 318 trades.
  4. The result holds only partly out of sample.
  5. Maximum drawdown -79.8%.
  6. It beats in neither half of the history (split at 2014).
  7. It ranks #32 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 NFLX 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 NFLX → · Full page for Stochastic: oversold cross (14, 3) →

How to cite

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

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