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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 ZTS?

Stochastic: oversold cross (14, 3) beats buy-and-hold on ZTS by +0.3 points a year over 14 years.

Total return
187.7%
Buy and hold
179.3%
CAGR
8.1%
Sharpe
0.30
Max drawdown
-49.8%
Trades
195
Out of sample
—
Years
14
1×4.6×2014201520162017201820192020202120222023202420252026
StrategyZTS

Findings

  1. Stochastic: oversold cross (14, 3) beats buy-and-hold on ZTS by +0.3 points a year over 14 years.
  2. Against the S&P 500 over the same window: -6.5 points a year.
  3. Total return +187.7% versus +179.3% for buy-and-hold, with 195 trades.
  4. Maximum drawdown -49.8%.
  5. It did not beat before 2019 and started afterwards.
  6. It ranks #119 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 ZTS 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 ZTS → · Full page for Stochastic: oversold cross (14, 3) →

How to cite

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

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