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Preparation · Stage 2 of 5 — Test
PG · Procter & GambleStocks

Does the Stochastic RSI strategy beat buy & hold on Procter & Gamble? (PG · backtested honestly)

Stochastic RSI applies the Stochastic formula to RSI itself, showing where current RSI sits in its own recent range on a 0-1 scale — a fast, noisy stretch gauge.

Lagged buy & hold2021-10-07 → 2026-10-06 · 1,254 barsCosts & slippage onvs Buy & HoldHypothetical · not advice
Total return
+4.1%
Buy & hold +18.6%
vs Buy & Hold
-14.4 pts
lagged the benchmark
Max drawdown
-21.6%
Sharpe 0.13 · 50 trades
The honest read

Over this period, Stochastic RSI on Procter & Gamble returned +4.1%, while simply buying and holding returned +18.6% — it lagged buy & hold by 14.4 points, with a worst drawdown of -21.6%. It traded 50 times and sat in cash about 53% of the time. It's a mechanism you test — not a recommendation.

What this settles — and the next dig

It lagged buy & hold over this window — that's a result, and a backtest you can kill for free just did its job. Re-tuning this same idea until it looks better only adds another shot at looking good by luck, so the honest next move is a fresh one: test a different strategy on Procter & Gamble, or build your own — free. Most ideas die cheaply right here, and that's exactly how the rare one that holds up gets found.

Or stop here — walking away from an idea that didn't beat simply holding is a result, not a failure.

Interactive

Run it yourself

Change the parameters and the window, then re-run — no account needed.

Have your own idea for Procter & Gamble? Build and honestly test your own strategy — no code, costs on, measured against buy & hold.

Build your own on Procter & Gamble →
Worked example

Two real trades from this backtest

Shown at the modeled fills — entries at the next open, protective stops and targets at their level; costs on. A single trade is never a signal and says nothing about the next one — not the best or worst, a middling winner and a middling loser among the completed trades.

50 trades total — 30 winners, 20 losers (60% won). Below is one of each, not a scoreboard. One position is still open at the window end — its result is unrealized and is counted in the totals above at its current mark, not shown as a card below.

  1. Entry. A long entry fired; filled at the next open on 2026-06-26 at $150.34 — never the signal bar's own close.
  2. Held. 41 daily bars.
  3. Exit. Exited on 2026-08-25 at $145.73 (the exit rule fired (filled at the next open)).
  4. Result. -3.17% after costs.

The worst single trade in this whole test reached -11.07%.

  1. Entry. A long entry fired; filled at the next open on 2023-11-20 at $150.21 — never the signal bar's own close.
  2. Held. 8 daily bars.
  3. Exit. Exited on 2023-12-01 at $153.33 (the exit rule fired (filled at the next open)).
  4. Result. +1.98% after costs.

Trading costs + slippage (0.10%) are already deducted from every figure above. One trade is never the edge — it's the whole distribution (the win rate, the losers, the reality-check) that matters; this just makes the mechanics concrete. It describes the past; it is not a prediction.

Put this honest verdict on your site

A live badge that re-runs itself and links back here. Free to embed on any blog, newsletter or forum — it shows the honest result, beat or lagged.

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How to read this
  • • The strategy line is Stochastic RSI on Procter & Gamble; the dashed line is simply buying and holding PG. Beating the dashed line is the whole point — many strategies don't.
  • • Max drawdown is the worst peak-to-trough fall you'd have sat through. A higher return with a much deeper drawdown is not obviously better.
  • • Every fill assumes next-open execution with costs & slippage on — no acting on prices you couldn't have known.
  • • A small number of trades means a small sample. Treat a great-looking result on a handful of trades with suspicion.
What this is — and isn't

This is a hypothetical backtest of a well-known mechanism on past data. It is not advice, not a prediction, and not a claim that the strategy works. I hold no funds and place no orders. The value here is the ability to test an idea honestly — see where it would have helped, and where it would have hurt — before you ever risk real money on your own broker.

How this is computed → · who's behind it · where a backtest fits

See what actually beats buy & hold — most don't, here are the rare few that do →