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Does anything beat buy & hold on Eversource Energy (ES)?

Every setup we tested on Eversource Energy (ES) — 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.

VALIDATED

Beat buy-and-hold out-of-sample AND cleared the multiple-testing hurdle.

Beat buy-and-hold out-of-sample AND full-sample out-of-sample Sharpe 1.0 cleared the selection hurdle 0.91. Buy-and-hold benchmark: +6.7% CAGR over 53.5 years (+10.1% CAGR in the out-of-sample window).

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

Eversource Energy (ES): One Setup Cleared the Bar — What That Does and Doesn't Mean

A validated verdict on an individual stock is rare, and it should be. Single companies are earnings-driven and idiosyncratic: one guidance cut or CEO exit can swamp any technical signal. We ran 760 indicator setups on Eversource Energy, of which 724 had enough history to qualify. Most stocks in our universe produce nothing that beats simply holding shares. Here, Detrended Price Osc. on the weekly timeframe outperformed buy-and-hold in both the full window and the held-out period, and its out-of-sample Sharpe of 1.0 cleared the multiple-testing hurdle of 0.91. A signal that survived 16.1 years of company-specific noise is worth documenting.

Read this as a record, not a promise. Out-of-sample alpha of +3.7% (full-window +1.2%) against a buy-and-hold CAGR of +6.7% came with a win rate of 58.6%, a maximum drawdown of -57.2%, and 314 trades — enough to measure, few enough that a handful of outcomes shaped the result. Only 0.7% of setups beat holding at all, so selection pressure is real even after the hurdle. Note the survivorship trap: ES exists today to be tested; delisted peers don't. Companies change, regimes change, and past validation does not predict 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 · Oscillator · Weekly

Detrended Price Osc.

Mechanical rule (exactly as backtested): Long while the Detrended Price Oscillator (20) 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
0.56
Sharpe
-57.2%
Max DD
58.6%
Win rate
314
Trades
+1.2%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.0 · alpha +3.7% · 94 trades over 16.1 yrs.

#2 · Momentum · Daily

TRIX

Mechanical rule (exactly as backtested): Long while the triple-smoothed TRIX (15) is above its signal line. Signals are evaluated at daily-bar close, the position changes on the NEXT bar, 0.08% cost per side, long/flat only — no leverage, no shorting.

>+999%
Total return
0.44
Sharpe
-44.6%
Max DD
49.9%
Win rate
341
Trades
-0.8%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.93 · alpha +2.0% · 100 trades over 16.0 yrs.

#3 · Mean Reversion · Weekly

MA Envelope

Mechanical rule (exactly as backtested): Percent envelope around an EMA — buy the dip below the lower band, exit back at the mean. 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.

+548.9%
Total return
0.31
Sharpe
-60.1%
Max DD
70.7%
Win rate
99
Trades
-3.1%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.91 · alpha +0.7% · 35 trades over 16.1 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 760 setups (indicator × parameters × timeframe) on Eversource Energy (ES). Only setups with ≥30 trades qualify (724 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 760 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 0.91 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 0.7% had positive out-of-sample alpha (median OOS Sharpe 0.09) — 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 724 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
1Detrended Price Osc.Weekly>+999%0.56-57.2%58.6%314+1.2%1.0+3.7%94
2TRIXDaily>+999%0.44-44.6%49.9%341-0.8%0.93+2.0%100
3MA EnvelopeWeekly+548.9%0.31-60.1%70.7%99-3.1%0.91+0.7%35
4Connors RSIWeekly+341.9%0.28-48.5%69.6%112-3.8%0.83-0.6%39
5Projection BandsWeekly+536.3%0.33-57.9%66.3%89-3.1%0.82-1.9%27
6Know Sure ThingDaily+946.0%0.36-44.9%48.6%360-2.1%0.8+0.1%99
7Bollinger Mean-ReversionWeekly+762.8%0.39-54.8%82.2%45-2.5%0.78-3.0%12
8Fibonacci BandsWeekly+762.8%0.39-54.8%82.2%45-2.5%0.78-3.0%12
9Stochastic Fast (5,3)Weekly+488.0%0.29-44.9%53.8%370-3.3%0.75-1.0%107
10Holy Grail ConfluenceDaily+379.8%0.28-58.1%72.1%68-3.7%0.71-1.0%24
11WaveTrend (8/6/4)Daily+631.3%0.31-60.0%74.5%192-2.8%0.69-0.4%63
12Intraday Momentum IndexDaily+342.5%0.26-60.0%68.1%144-3.8%0.69-1.3%45
13Order-Flow ReversionWeekly+735.5%0.39-52.3%84.1%44-2.6%0.69-3.9%11
14Murrey Math LinesDaily+333.7%0.26-67.0%75.0%140-3.8%0.68-2.0%46
15Connors RSI-2Weekly+302.2%0.27-55.6%64.7%116-4.0%0.68-2.7%38
16Stochastic RSIWeekly>+999%0.52-27.4%74.4%82-0.9%0.67-3.0%27
17RSI Mean-ReversionDaily+196.3%0.24-55.9%71.2%66-4.6%0.67-4.1%23
18Morning StarWeekly-10.2%0.03-68.1%56.0%125-6.9%0.66-4.4%42
19QQEWeekly>+999%0.44-68.2%52.8%161+0.6%0.64+1.2%49
20Demand IndexWeekly+236.8%0.22-64.1%67.2%128-4.4%0.64-0.7%48

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.

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