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Mean reversion · AVGO · 1D

Does Williams %R bounce actually work on AVGO? We tested it

We ran Williams %R bounce on AVGO through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 80 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +174.1%
Win rate 81.6%
Max drawdown −31.3%
Trades 38
Sharpe 0.79
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 +14.3% 0.77 6
2 Jul 2020 to Jul 2022 +29.6% 1.09 10
3 Jul 2022 to Jul 2024 +47.2% 1.94 10
4 Jul 2024 to Jul 2026 +14.0% 0.44 9
4 of 4 periods positive. Mean Sharpe 1.06. Worst period +14.0%.
Market matrix
Edge held on 12 of 28

The same rules, tested on 28 tickers. Edge held on 12. We ship it on those.

AVGO SHIPPED
80/100 EDGE
META
100/100 EDGE
NFLX
98/100 EDGE
UBER
98/100 EDGE
XOM
96/100 EDGE
DIA
93/100 EDGE
JPM
93/100 EDGE
NVDA
92/100 EDGE
SPY
91/100 EDGE
GLD
82/100 EDGE
QQQ
81/100 EDGE
MU
79/100 EDGE
Show every ticker we tested
RIOT
81/100 NONE
AMD
67/100 NONE
BA
65/100 NONE
IWM
62/100 NONE
GOOGL
58/100 NONE
MSTR
58/100 NONE
MSFT
56/100 NONE
COIN
55/100 NONE
AMZN
52/100 NONE
AAPL
47/100 NONE
SOFI
37/100 NONE
TSLA
12/100 NONE
MARA
10/100 NONE
SMCI
7/100 NONE
HOOD
too new TOO NEW
PLTR
too new TOO NEW
The rules
Entrywhen WILLR of close over 14 bars crosses above -90 AND close is above SMA of close over 200 bars
Exitwhen a signal fires (WILLR of close over 14 bars is above -30)
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, turning a 174% total return on AVGO over 38 trades. The ride was lumpy, not smooth, with a Sharpe ratio of 0.79 and a painful worst drawdown of -31.30% that lasted from December 2024 to April 2025. That drawdown is where it hurt most, and it shows the strategy can suffer deep, prolonged losses even though it wins 81.58% of the time. The result is not driven by just a few lucky trades, as the entry timing has a real edge, beating 80% of random entry runs, meaning the entry signal itself is carrying the performance. The edge is also consistent, showing up profitably in all 4 walk-forward test periods, so it is not a fluke from one lucky stretch.

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