Risk–Return Efficiency of Stochastic Oscillator Strategies in BRICS During COVID-19 and Geopolitical Conflicts
Authors
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Poonam
Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar - 125 001, Haryana
https://orcid.org/0009-0008-9358-1655
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N. S. Malik
Professor (Corresponding Author), Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar - 125 001, Haryana
https://orcid.org/0000-0002-0165-2719
DOI:
https://doi.org/10.17010/ijf/2025/v19i10/175678Keywords:
technical trading, stochastic oscillator, stock market, BRICS.JEL Classification Codes : C58, G12, G14
Publication Chronology: Paper Submission Date : February 5, 2025 ; Paper sent back for Revision : July 15, 2025 ; Paper Acceptance Date : September 12, 2025 ; Paper Published Online : October 15, 2025
Abstract
Purpose : This study examined the risk–return efficiency of stochastic oscillator-based trading strategies in BRICS stock markets during the COVID-19 pandemic and recent geopolitical conflicts.
Methodology : Using daily index data from January 2018 to May 2025, the study applied t-tests, CAGR, alpha ratio, and Sharpe ratio to assess the performance of the stock market.
Findings : The stochastic oscillator failed to outperform the buy-hold strategy consistently. Positive results were limited to Russia and South Africa, while Brazil, India, and China showed weak or negative risk-adjusted returns.
Practical Implications : Traders in BRICS markets used stochastic strategies cautiously, especially in volatile environments, and avoided relying on them as standalone tools.
Originality : This research added to the literature by uniquely analyzing the stochastic oscillator under crisis conditions, offering practical insights for active trading in emerging markets.
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