Does Stochastic oversold bounce actually work on NFLX? We tested it
We ran Stochastic oversold bounce on NFLX through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 96 of 100 random-entry runs.
You gave up raw return for a higher win rate and a shallower drawdown. This setup is about timing and staying out of trouble, not beating the index.
Equity curve over Aug 2016 to Jul 2026. Hover any point for its value. Turn on buy and hold to compare.
The same rules, tested on 28 tickers. Edge held on 6. We ship it on those.
Show every ticker we tested
This strategy made money overall, turning a 204% total return on 31 trades. The ride was very lumpy, with a brutal 47% drawdown that lasted from August 2021 to March 2022, which is where it hurt the most. The win rate is extremely high at over 90%, but the average trade only gained 4.2%, meaning the profits came from many small wins rather than a few big home runs. The entry timing is a major factor here, since the real entries beat 96% of random entry runs, so the setup itself is picking good spots to get in. The edge was consistent across three out of four walk-forward periods, so the result is not just from one lucky stretch.
Every verdict on this page comes from the same process. How we test.
Sign up free. EdgeStacker runs a fresh backtest for you, then alerts you on the Today screen when the setup fires.