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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 PRU?

Stochastic: oversold cross (14, 3) does not beat buy-and-hold on PRU: -6.3 points a year over 25 years.

Total return
99.4%
Buy and hold
767.8%
CAGR
2.8%
Sharpe
0.12
Max drawdown
-83.7%
Trades
343
Out of sample
overfit
Years
25
0.5×1×4.8×9×2002200420062008201020122014201620182020202220242026
StrategyPRU

Findings

  1. Stochastic: oversold cross (14, 3) does not beat buy-and-hold on PRU: -6.3 points a year over 25 years.
  2. Against the S&P 500 over the same window: -7.2 points a year.
  3. Total return +99.4% versus +767.8% for buy-and-hold, with 343 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -83.7%.
  6. It beats in neither half of the history (split at 2014).
  7. It ranks #135 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 PRU 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 PRU → · Full page for Stochastic: oversold cross (14, 3) →

How to cite

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

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