Stratsemble
Preparation · Stage 2 of 5 — Test
SOL · SolanaCrypto

Does the Stochastic Oscillator strategy beat buy & hold on Solana? (SOL · backtested honestly)

The Stochastic %K shows where the close sits inside the recent high-low range on a 0-100 scale — a range/reversion gauge.

Lagged buy & hold2021-10-29 → 2026-10-27 · 1,825 barsCosts & slippage onvs Buy & HoldHypothetical · not advice
Total return
-81.5%
Buy & hold -49.4%
vs Buy & Hold
-32.0 pts
lagged the benchmark
Max drawdown
-90.3%
Sharpe -0.13 · 45 trades
The honest read

Over this period, Stochastic Oscillator on Solana returned -81.5%, while simply buying and holding returned -49.4% — it lagged buy & hold by 32.0 points, with a worst drawdown of -90.3%. It traded 45 times and sat in cash about 49% of the time. It's a mechanism you test.

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 Solana, 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.

Change the rules? Open the Stochastic Oscillator rules on Solana in the no-code builder — the same rules tested here — and make them your own.

Open in the builder →
Worked example

Two real trades from this backtest

Shown at the modeled fills — entries at the next open; a stop at its level, or at that day's open if the day opened past it; a target at its 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.

45 trades total — 26 winners, 19 losers (58% 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 2023-08-17 at $22.81 — never the signal bar's own close.
  2. Held. 34 daily bars.
  3. Exit. Exited on 2023-09-20 at $20.04 (the exit rule fired (filled at the next open)).
  4. Result. -12.27% after costs.

The worst single trade in this whole test reached -65.90%.

  1. Entry. A long entry fired; filled at the next open on 2022-12-17 at $12.27 — never the signal bar's own close.
  2. Held. 18 daily bars.
  3. Exit. Exited on 2023-01-04 at $13.35 (the exit rule fired (filled at the next open)).
  4. Result. +8.75% 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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an honest backtest — real costs on, measured against simply buying & holding

How to read this
  • • The strategy line is Stochastic Oscillator on Solana; the dashed line is simply buying and holding SOL. 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. We 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 →

Indicator and strategy names identify the published rule being tested; no affiliation with, or endorsement by, any person or trademark owner is implied.