Home / Strategies / Archer Daniels Midland (ADM)
Stock · strategy report

Does anything beat buy & hold on Archer Daniels Midland (ADM)?

Every setup we tested on Archer Daniels Midland (ADM) — ranked out-of-sample, corrected for multiple testing, and forward-tracked in public from the day this page published. The honest answer is the headline.

NOTHING BEAT BUY-AND-HOLD

No setup beat simply holding once tested honestly. We say so plainly.

Its best setup only beat buy-and-hold in one window — a regime artifact, not a strategy. Buy-and-hold benchmark: +10.1% CAGR over 46.4 years (+11.1% CAGR in the out-of-sample window).

Educational research from historical backtests — not investment advice. Past performance does not predict future results.

ADM: we tested 764 setups and none beat simply holding Archer Daniels Midland

For Archer Daniels Midland (ADM), we ran 764 indicator configurations against a plain buy-and-hold benchmark, and none of them earned the right to replace it. Individual stocks carry idiosyncratic risk — earnings surprises, guidance changes, sector rotation — that indicators built on price history cannot see coming. The best-looking setup, Chaikin Oscillator on the weekly timeframe, ranked at the top in-sample but delivered an out-of-sample Sharpe of 0.69, short of our hurdle of 0.98. Buy-and-hold returned +10.1% annualized over the test period; the top strategies mostly captured pieces of that same move while adding trading friction.

How to read this honestly: when you test 764 setups and keep the best one, something will always look impressive by chance alone. That is why we require the survivor to clear 0.98 out of sample. Chaikin Oscillator managed 0.69, with out-of-sample alpha of +1.3% across 13.9 years and 109 trades, and only 0.8% of everything we tested beat the benchmark on unseen data — roughly what luck would produce. None of this predicts anything: the regime that generated these numbers can shift, and single stocks shift faster than most. Treat this page as a record of what failed under honest testing, not a forecast.

Every figure above is computed from our own backtests — nothing is estimated or invented. Hypothetical results; not investment advice.

Failure exhibit

The least-bad setups — shown with their failure numbers

Nothing here earned a verdict — these are the best of a losing field, published so you can see exactly how "best" still failed.

#1 · Volume · Weekly

Chaikin Oscillator

Mechanical rule (exactly as backtested): Long while the Chaikin Oscillator (3/10 EMA of A/D) is positive. Signals are evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

>+999%
Total return
0.5
Sharpe
-41.8%
Max DD
53.2%
Win rate
109
Trades
-1.4%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.69 · alpha +1.3% · 30 trades over 13.9 yrs.

#2 · Volume · Weekly

A/D Oscillator

Mechanical rule (exactly as backtested): Williams Accumulation/Distribution oscillator — long while the fast line leads. Signals are evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

>+999%
Total return
0.5
Sharpe
-41.8%
Max DD
53.2%
Win rate
109
Trades
-1.4%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.69 · alpha +1.3% · 30 trades over 13.9 yrs.

#3 · Trend · Weekly

Vortex (7)

Mechanical rule (exactly as backtested): Variant — fast Vortex(7); long while VI+ leads VI-. Signals are evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

>+999%
Total return
0.52
Sharpe
-41.3%
Max DD
53.3%
Win rate
150
Trades
-1.0%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.68 · alpha +0.5% · 44 trades over 13.9 yrs.

Forward test

Since publication — including if it loses

0.0%
the published setup, since 2026-07-02 (0 market days)
0.0%
buy & hold, same window

The forward record is just getting started — the gap between the two is the honest score. Marked to market nightly from real prices, rules frozen at publication, as of 2026-06-29. Currently FLAT.

How this verdict was computed (mode: out-of-sample)

We tested 764 setups (indicator × parameters × timeframe) on Archer Daniels Midland (ADM). Only setups with ≥30 trades qualify (716 did). Setups are ranked by out-of-sample Sharpe — the last ~30% of history, which standard-parameter rules never saw during selection. Because picking the best of 764 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 0.98 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 0.8% had positive out-of-sample alpha (median OOS Sharpe 0.33) — the table below is truncated, but this summary covers all of them. Full recipe: methodology · the engine’s contract lives in the repo as STRATEGY_METHODOLOGY.md.

Ranked table

Top 20 of 716 eligible setups

Ranked by out-of-sample Sharpe. Full + out-of-sample columns, costs included. Hypothetical.

#SetupTFTotal retSharpeMax DDWinTradesα vs B&HOOS SharpeOOS αOOS trades
1Chaikin OscillatorWeekly>+999%0.5-41.8%53.2%109-1.4%0.69+1.3%30
2A/D OscillatorWeekly>+999%0.5-41.8%53.2%109-1.4%0.69+1.3%30
3Vortex (7)Weekly>+999%0.52-41.3%53.3%150-1.0%0.68+0.5%44
4Lorentzian ClassificationWeekly+349.6%0.26-53.2%50.9%458-6.9%0.67+0.3%163
5RSI (21)Weekly>+999%0.41-52.1%41.1%95-3.6%0.66-0.0%19
6KAMA 10/30 CrossDaily+964.6%0.34-55.3%42.3%142-5.0%0.66-0.2%38
7SMC: Change of CharacterDaily>+999%0.35-66.1%52.1%121-4.7%0.65+0.6%32
8PMaxDaily>+999%0.4-59.1%47.6%63-3.7%0.65-0.8%18
9Relative Momentum IndexWeekly>+999%0.42-43.3%47.8%46-3.4%0.64-0.5%12
10FRAMA 200 TrendWeekly+213.8%0.23-58.2%48.3%205-7.7%0.64-0.5%54
11RSI (25)Weekly>+999%0.41-47.7%45.3%86-3.5%0.63-0.5%19
12EMA 9/26 CrossWeekly>+999%0.39-48.5%48.9%45-4.0%0.63-0.6%11
13EMA 8/21 CrossWeekly>+999%0.37-44.2%41.8%55-4.3%0.62-0.9%11
14Coral TrendWeekly>+999%0.39-55.8%49.1%53-4.0%0.62-0.9%13
15Smoothed MA (Wilder)Weekly>+999%0.39-55.7%39.2%102-4.0%0.61-1.0%22
16CCI (50)Weekly>+999%0.5-34.5%45.1%51-1.6%0.61-1.0%14
17Trend Regularity Adaptive MADaily+241.6%0.23-58.8%35.5%287-7.6%0.61-1.9%79
18WMA 10/30 CrossWeekly>+999%0.36-55.1%50.9%55-4.6%0.6-1.2%14
19Disparity (50)Weekly>+999%0.39-49.4%44.8%87-3.9%0.6-1.2%21
20EMA 20/80 CrossDaily>+999%0.38-46.0%40.5%84-4.1%0.6-1.5%21

Hypothetical backtests with 0.08%/side costs. Not investment advice — see the full disclaimer.

Read this before acting on anything

These are historical backtests of mechanical rules. They are educational research, not investment advice, not a recommendation, and not tailored to you. Educational information only — not investment advice. Hypothetical backtested results; past performance does not guarantee future results. Trading involves risk of loss.

Keep digging