Home / Strategies / Blockchain (BLOK)
ETF · strategy report

Does anything beat buy & hold on Blockchain (BLOK)?

Every setup we tested on Blockchain (BLOK) — 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.

MIXED

Beat buy-and-hold in both windows — but can't be told apart from selection luck.

Beat buy-and-hold in both the full window and out-of-sample but its OOS Sharpe 1.92 did not clear the 2.28 selection hurdle (best-of-N luck cannot be ruled out). Buy-and-hold benchmark: +17.0% CAGR over 8.4 years (+45.3% CAGR in the out-of-sample window).

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

Blockchain (BLOK): Zero-Lag MACD Beat the Index, But Couldn't Beat the Odds

Broad index funds like Blockchain are diversified by construction, which makes them stubbornly hard to beat — most of what looks like edge in a backtest is just the market's own return, rearranged. Here the picture is genuinely mixed. Out of 664 indicator configurations we tested on BLOK, the strongest was Zero-Lag MACD on the weekly timeframe. It outperformed buy-and-hold in both the training and out-of-sample windows, with a profitable trade profile across 34 out-of-sample trades. That is more than most setups on this asset manage, and less than what we would call validated.

Read the figures with the selection problem in mind. An out-of-sample Sharpe of 1.92 sounds fine until you remember it was chosen as the best of hundreds of attempts; our hurdle of 2.28 exists precisely to discount that luck, and this setup did not clear it. The out-of-sample alpha of +14.4% over 2.5 years, a 55.9% win rate, and a -58.1% drawdown describe one historical path, nothing more. Only 4.7% of setups beat buy-and-hold at all here, while buy-and-hold itself compounded at +17.0%. Market regimes shift; past performance carries no promise about future results.

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

The rules

Top setups as mechanical rules

Exactly as the backtest defined them — no discretionary steps, no hidden filters.

#1 · Momentum · Weekly

Zero-Lag MACD

Mechanical rule (exactly as backtested): MACD built on zero-lag EMAs for faster signals - long while the zero-lag MACD line is above its signal. 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.

+544.7%
Total return
0.94
Sharpe
-58.1%
Max DD
55.9%
Win rate
34
Trades
+7.9%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.92 · alpha +14.4% · 10 trades over 2.5 yrs.

#2 · Momentum · Weekly

Zero-Lag MACD

Mechanical rule (exactly as backtested): MACD built on zero-lag EMAs for faster signals - long while the zero-lag MACD line is above its signal. 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.

+544.7%
Total return
0.94
Sharpe
-58.1%
Max DD
55.9%
Win rate
34
Trades
+7.9%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.92 · alpha +14.4% · 10 trades over 2.5 yrs.

#3 · Oscillator · Weekly

Chande Forecast Osc.

Mechanical rule (exactly as backtested): Price vs its time-series (linear-regression) forecast — long while the forecast oscillator 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.

+589.6%
Total return
0.95
Sharpe
-34.0%
Max DD
49.0%
Win rate
49
Trades
+8.9%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.89 · alpha +12.8% · 14 trades over 2.5 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 664 setups (indicator × parameters × timeframe) on Blockchain (BLOK). Only setups with ≥30 trades qualify (384 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 664 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 2.28 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 4.7% had positive out-of-sample alpha (median OOS Sharpe 0.98) — 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 384 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
1Zero-Lag MACDWeekly+544.7%0.94-58.1%55.9%34+7.9%1.92+14.4%10
2Zero-Lag MACDWeekly+544.7%0.94-58.1%55.9%34+7.9%1.92+14.4%10
3Chande Forecast Osc.Weekly+589.6%0.95-34.0%49.0%49+8.9%1.89+12.8%14
4Stochastic Fast (5,3)Weekly+265.3%0.69-57.2%51.9%54-0.3%1.83+10.7%16
5Center of GravityWeekly+284.9%0.7-62.0%47.1%51+0.4%1.68+6.2%13
6KDJWeekly+479.9%0.93-39.9%50.0%42+6.3%1.67-0.6%11
7Accumulation Swing IndexWeekly+348.4%0.79-55.5%47.8%90+2.6%1.66+2.8%29
8Swing IndexWeekly+348.4%0.79-55.5%47.8%90+2.6%1.66+2.8%29
9Ulcer IndexDaily+337.1%0.97-39.1%44.4%54+2.1%1.65-3.3%17
10Fractal Adaptive MAWeekly+396.2%0.95-36.9%44.4%45+4.0%1.64-0.5%14
11Stoch RSI (fast)Weekly+597.5%1.01-36.7%48.8%41+9.0%1.62+5.5%12
12Supertrend (7,2)Daily+633.4%1.03-50.0%46.4%56+9.7%1.56+2.4%15
13Perfect Trend LineWeekly+727.9%1.03-37.6%42.1%38+11.6%1.55+4.4%12
14Supertrend Fast (10,2)Daily+392.8%0.85-51.9%45.0%60+3.8%1.55+2.2%15
15Supertrend (10,2)Daily+392.8%0.85-51.9%45.0%60+3.8%1.55+2.2%15
16Elder ImpulseWeekly+347.5%0.89-33.7%63.0%46+2.6%1.54-6.7%14
17Ichimoku TK CrossDaily+771.5%1.08-44.5%53.8%39+12.4%1.5+3.7%12
18Q-StickWeekly+568.3%0.94-44.0%52.9%34+8.4%1.49+3.1%12
19Deviation-Scaled MAWeekly+557.5%0.95-41.5%42.9%35+8.2%1.48+1.1%11
20EMA 30 TrendDaily+862.3%1.13-33.3%31.0%87+13.9%1.47+2.8%25

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