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Does anything beat buy & hold on Zcash (ZEC)?

Every setup we tested on Zcash (ZEC) — 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 1.64 did not clear the 1.88 selection hurdle (best-of-N luck cannot be ruled out). Buy-and-hold benchmark: +4.0% CAGR over 12.4 years (+103.1% CAGR in the out-of-sample window).

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

Zcash (ZEC): Beat Buy-and-Hold in Both Windows, Couldn't Beat the Selection Hurdle

Crypto sets a brutal baseline: Zcash compounds at +4.0% annualized just for holding, and it charges drawdowns near -86.0% for the privilege. Against that backdrop we ran 679 indicator configurations on ZEC. The best of them — Ehlers Roofing Filter on the daily timeframe — beat buy-and-hold in both the training and holdout windows, with a profitable out-of-sample trade profile across 51 trades. That is genuinely uncommon here. But 'best of 679' is exactly the phrase that should make you slow down, which is what the second paragraph is for.

When you pick the winner from 679 attempts, the result is partly signal and partly luck of the draw. Our hurdle corrects for that: with this many tries and 3.7 years of holdout data, an out-of-sample Sharpe needs to clear 1.88 before we trust it. This one landed at 1.64 — profitable, but statistically indistinguishable from the luckiest of hundreds of tries. Add that crypto structure keeps changing — new venues, new participants, shifting volatility regimes — and a pattern from the past has no obligation to repeat. Treat this as a research lead, not an edge.

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

The rules

The setups that ranked, and what they are

Fully mechanical — no discretionary steps, no hidden filters. We name the indicator and publish its record; we keep the settings.

#1 · Oscillator · Daily

Ehlers Roofing Filter

What it is: A channel / envelope rule: it measures how far price has travelled from a moving reference and acts at the extremes. Long/flat only — no leverage, no shorting. The parameters we tested are not published.

How it was tested: signals evaluated at daily-bar close, the position changes on the NEXT bar, 0.08% cost per side. Same engine, same cost model, same out-of-sample split as every other number on this site.

>+999%
Total return
0.76
Sharpe
-86.0%
Max DD
47.1%
Win rate
51
Trades
+30.6%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.64 · alpha +81.5% · 13 trades over 3.7 yrs.

#2 · Oscillator · Weekly

Chande Forecast Osc.

What it is: An oscillator rule: it reads a bounded momentum gauge and takes exposure when it turns from an extreme. Long/flat only — no leverage, no shorting. The parameters we tested are not published.

How it was tested: signals evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side. Same engine, same cost model, same out-of-sample split as every other number on this site.

>+999%
Total return
0.78
Sharpe
-83.6%
Max DD
44.7%
Win rate
38
Trades
+42.8%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.61 · alpha +212.1% · 10 trades over 2.6 yrs.

#3 · Volatility · Daily

Chande Kroll Stop

What it is: A channel / envelope rule: it measures how far price has travelled from a moving reference and acts at the extremes. Long/flat only — no leverage, no shorting. The parameters we tested are not published.

How it was tested: signals evaluated at daily-bar close, the position changes on the NEXT bar, 0.08% cost per side. Same engine, same cost model, same out-of-sample split as every other number on this site.

>+999%
Total return
0.83
Sharpe
-82.4%
Max DD
37.0%
Win rate
181
Trades
+38.2%
vs B&H

Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 1.6 · alpha +88.9% · 43 trades over 3.7 yrs.

Forward test

Since publication — including if it loses

+39.12%
the published setup, since 2026-07-02 (70 market days)
+148.46%
buy & hold, same window

Buy-and-hold is ahead so far — we publish that too. That is the point. Marked to market nightly from real prices, rules frozen at publication, as of 2026-09-11. Currently LONG.

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

We tested 679 setups (indicator × parameters × timeframe) on Zcash (ZEC). Only setups with ≥30 trades qualify (411 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 679 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 1.88 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 29.9% had positive out-of-sample alpha (median OOS Sharpe 1.12) — the table below is truncated, but this summary covers all of them. How we test: methodology. The scoring contract is published in full; the parameters of each individual setup are not.

Ranked table

Top 20 of 411 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
1Ehlers Roofing FilterDaily>+999%0.76-86.0%47.1%51+30.6%1.64+81.5%13
2Chande Forecast Osc.Weekly>+999%0.78-83.6%44.7%38+42.8%1.61+212.1%10
3Chande Kroll StopDaily>+999%0.83-82.4%37.0%181+38.2%1.6+88.9%43
4Chande Forecast Osc.Daily>+999%0.92-81.2%47.0%336+46.4%1.6+59.6%103
5Cascade Z-ScoreDaily>+999%0.93-68.5%38.5%78+44.1%1.6+57.2%25
6Stochastic (20,5)Daily>+999%0.78-81.8%43.3%217+31.7%1.6+55.5%64
7Hull MA 20/80 CrossDaily>+999%0.68-87.5%43.5%69+23.2%1.59+66.8%20
8TEMA 20/50 CrossDaily>+999%0.81-77.9%44.1%59+34.3%1.57+61.2%19
9Hull MA 100 TrendDaily>+999%0.76-68.8%47.5%80+29.0%1.57+52.2%21
10DEMA 20/50 CrossDaily>+999%0.82-78.0%51.2%43+35.9%1.56+59.8%15
11T3 8/21 CrossDaily>+999%0.69-82.4%44.1%59+23.3%1.56+59.7%16
12Stochastic Slow (21,5)Daily>+999%0.76-78.8%42.3%213+30.3%1.56+49.6%60
13Even Better SinewaveDaily>+999%0.89-85.8%49.1%55+42.8%1.54+55.1%17
14Elder ImpulseWeekly>+999%0.92-43.6%38.2%34+66.0%1.52+154.1%12
15Linear Regression SlopeDaily>+999%0.68-85.2%53.8%78+22.8%1.51+48.5%23
16Correlation TrendDaily>+999%0.68-85.2%53.8%78+22.8%1.51+48.5%23
17DEMA 100 TrendDaily>+999%0.8-76.7%38.1%84+32.7%1.51+41.7%22
18VortexDaily>+999%0.73-84.5%45.6%136+28.1%1.5+45.5%39
19Random Walk IndexDaily>+999%0.73-84.5%45.6%136+28.1%1.5+45.5%39
20Random Walk IndexDaily>+999%0.73-84.5%45.6%136+28.1%1.5+45.5%39

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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