Library
Mean reversion · NFLX · 1D

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

We ran Williams %R bounce on NFLX through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 98 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +164.4%
Win rate 72.2%
Max drawdown −21.9%
Trades 36
Sharpe 0.77
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 +12.0% 0.44 8
2 Jul 2020 to Jul 2022 +29.1% 0.97 8
3 Jul 2022 to Jul 2024 +33.6% 1.03 10
4 Jul 2024 to Jul 2026 +16.7% 0.71 7
4 of 4 periods positive. Mean Sharpe 0.79. Worst period +12.0%.
Market matrix
Edge held on 12 of 28

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

NFLX SHIPPED
98/100 EDGE
META
100/100 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
AVGO
80/100 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 164.40% total return over 36 trades. The ride was moderately lumpy, with a Sharpe ratio of 0.77, meaning you had some ups and downs. The worst hit was a -21.85% drawdown that happened in late October 2018, which is where the strategy hurt most. The result is not driven by just a few lucky trades, as the win rate is a solid 72.22% and the average trade returned 2.85%. The entry timing is a key strength here, since real entries beat 98% of random entry runs, so getting in at the right moment is carrying the result. The edge is also consistent, as the strategy was profitable in all four walk-forward test periods, 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