Library
Mean reversion · NVDA · 1D

Does Four-down-days bounce actually work on NVDA? We tested it

We ran Four-down-days bounce on NVDA through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 100 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +111.1%
Win rate 87.5%
Max drawdown −14.4%
Trades 32
Sharpe 0.87
Equity curve

Equity curve over Aug 2016 to Jul 2026. Hover any point for its value. Turn on buy and hold to compare.

PeriodWindowReturnSharpeTrades
1 Aug 2018 to Jul 2020 −5.6% −0.44 2
2 Jul 2020 to Jul 2022 +6.4% 0.83 9
3 Jul 2022 to Jul 2024 +69.4% 1.59 8
4 Jul 2024 to Jul 2026 +16.3% 1.30 10
3 of 4 periods positive. Mean Sharpe 0.82. Worst period −5.6%.
Market matrix
Edge held on 7 of 28

The same rules, tested on 28 tickers. Edge held on 7. We ship it on those.

NVDA SHIPPED
100/100 EDGE
TSLA
98/100 EDGE
AAPL
92/100 EDGE
META
86/100 EDGE
UBER
81/100 EDGE
MSTR
79/100 EDGE
AVGO
77/100 EDGE
Show every ticker we tested
JPM
77/100 NONE
GOOGL
74/100 NONE
AMZN
63/100 NONE
MU
58/100 NONE
AMD
52/100 NONE
MSFT
46/100 NONE
RIOT
42/100 NONE
DIA
36/100 NONE
SPY
34/100 NONE
XOM
27/100 NONE
SMCI
22/100 NONE
IWM
21/100 NONE
COIN
21/100 NONE
MARA
19/100 NONE
GLD
18/100 NONE
SOFI
12/100 NONE
QQQ
8/100 NONE
NFLX
7/100 NONE
BA
5/100 NONE
HOOD
too new TOO NEW
PLTR
too new TOO NEW
The rules
Entrywhen close is above SMA of close over 200 bars AND close is below close 1 bar ago AND close 1 bar ago is below close 2 bars ago AND close 2 bars ago is below close 3 bars ago AND close 3 bars ago is below close 4 bars ago
Exitwhen a signal fires (close is above close 1 bar ago), or 10 bars have passed since entry (time stop)
Sizing**Position size:** no fixed stop distance to size against. This strategy exits on signal only. Size by conviction, or add a hard stop for a size-by-risk number.
Diagnosis

This strategy made money overall, turning a 111% total return on NVDA by buying after four consecutive down days while the stock was above its 200-day average. The ride was fairly steady, with a high 87.5% win rate and an average gain of 2.5% per trade, but it did have one painful stretch: a 14.43% drawdown that lasted from mid-2017 to late 2018, which is where the strategy hurt most. The result is not driven by just a few lucky trades, as the edge was consistent across 32 trades. The entry-timing edge figure shows that the real entries beat 100% of random entry runs, meaning the entry signal itself is carrying the result, not the exits. The consistency figure shows the edge showed up steadily across three of the four walk-forward test periods, so it was not just one lucky stretch.

Run this on your own account.

Sign up free. EdgeStacker runs a fresh backtest for you, then alerts you on the Today screen when the setup fires.

Test it yourself, free