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Does anything beat buy & hold on Teradyne (TER)?

Every setup we tested on Teradyne (TER) — 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 trailed buy-and-hold out-of-sample. Buy-and-hold benchmark: +11.4% CAGR over 53.3 years (+24.8% CAGR in the out-of-sample window).

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

TER: we tested 763 setups and none beat simply holding Teradyne

For Teradyne (TER), we ran 763 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, SMC: Order Block on the daily timeframe, ranked at the top in-sample but delivered an out-of-sample Sharpe of 0.81, short of our hurdle of 0.91. Buy-and-hold returned +11.4% 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 763 setups and keep the best one, something will always look impressive by chance alone. That is why we require the survivor to clear 0.91 out of sample. SMC: Order Block managed 0.81, with out-of-sample alpha of -3.1% across 16.0 years and 358 trades, and only 0.0% 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 · Smart Money · Daily

SMC: Order Block

Mechanical rule (exactly as backtested): Marks the last down-candle before a bullish break of structure; long while price holds above that order block. 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
0.57
Sharpe
-70.5%
Max DD
39.4%
Win rate
358
Trades
+3.6%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.81 · alpha -3.1% · 115 trades over 16.0 yrs.

#2 · Pattern · Weekly

Bullish Marubozu

Mechanical rule (exactly as backtested): Full-bodied bull candle (no wicks) — enter long, hold a short horizon. 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.

+394.9%
Total return
0.28
Sharpe
-54.4%
Max DD
56.9%
Win rate
65
Trades
-8.4%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.76 · alpha -17.7% · 22 trades over 16.1 yrs.

#3 · Mean Reversion · Weekly

VWAP Bands

Mechanical rule (exactly as backtested): Rolling VWAP ± standard-deviation bands — buy below the lower band, exit at VWAP. 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.

+553.0%
Total return
0.26
Sharpe
-70.8%
Max DD
68.4%
Win rate
38
Trades
-7.9%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.75 · alpha -12.9% · 12 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 2026-07-02. Currently FLAT.

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

We tested 763 setups (indicator × parameters × timeframe) on Teradyne (TER). Only setups with ≥30 trades qualify (731 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 763 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, 0.0% had positive out-of-sample alpha (median OOS Sharpe 0.48) — 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 731 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
1SMC: Order BlockDaily>+999%0.57-70.5%39.4%358+3.6%0.81-3.1%115
2Bullish MarubozuWeekly+394.9%0.28-54.4%56.9%65-8.4%0.76-17.7%22
3VWAP BandsWeekly+553.0%0.26-70.8%68.4%38-7.9%0.75-12.9%12
4Accelerator OscillatorWeekly>+999%0.51-76.8%44.4%160+1.3%0.74-6.2%48
5Markov Regime (Confirmed)Weekly>+999%0.38-69.5%54.5%112-5.1%0.73-5.6%71
6Markov RegimeWeekly>+999%0.36-96.2%57.7%149-4.8%0.72-3.0%74
7Chande Momentum Osc.Weekly>+999%0.55-77.1%46.0%176+2.7%0.72-6.4%51
8Zero-Lag EMA CrossWeekly>+999%0.51-82.5%43.0%128+1.2%0.72-7.4%36
9ZLEMA 10/30 CrossWeekly>+999%0.51-82.5%43.0%128+1.2%0.72-7.4%36
10Ultimate OscillatorDaily+669.2%0.29-97.0%64.8%71-7.5%0.72-9.4%14
11CMO (21)Daily>+999%0.5-76.1%39.3%624+0.5%0.71-6.7%176
12Hull MA TrendWeekly>+999%0.57-88.7%44.5%137+3.7%0.71-6.8%41
13Parabolic SAR (fast)Daily>+999%0.42-95.8%42.3%911-2.6%0.71-7.2%285
14McGinley DynamicDaily>+999%0.58-81.9%37.5%618+4.6%0.7-6.1%182
15SMA 15/60 CrossDaily>+999%0.49-87.5%41.7%132+0.2%0.7-6.3%40
16Coppock (fast)Daily>+999%0.32-95.6%41.8%471-6.1%0.7-6.9%133
17QQEWeekly>+999%0.42-97.1%43.6%163-2.3%0.69-3.9%50
18Trendlines with BreaksDaily>+999%0.52-84.1%43.2%111+1.2%0.69-6.8%32
19ROC (20)Daily>+999%0.46-73.3%42.6%653-0.7%0.69-7.2%178
20Momentum (20)Daily>+999%0.46-73.3%42.6%653-0.7%0.69-7.2%178

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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