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Trend · MSTR · 1D

Does Bollinger upper-band breakout actually work on MSTR? We tested it

We ran Bollinger upper-band breakout on MSTR through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 92 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +1228.2%
Win rate 32.3%
Max drawdown −62.6%
Trades 31
Sharpe 0.99
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 −25.7% −1.33 8
2 Jul 2020 to Jul 2022 +138.1% 1.23 8
3 Jul 2022 to Jul 2024 +472.8% 2.23 6
4 Jul 2024 to Jul 2026 +57.3% 0.89 6
3 of 4 periods positive. Mean Sharpe 0.76. Worst period −25.7%.
Market matrix
Edge held on 5 of 28

The same rules, tested on 28 tickers. Edge held on 5. We ship it on those.

MSTR SHIPPED
92/100 EDGE
RIOT
100/100 EDGE
MARA
88/100 EDGE
TSLA
83/100 EDGE
MSFT
76/100 EDGE
Show every ticker we tested
COIN
73/100 NONE
SOFI
65/100 NONE
AMD
63/100 NONE
NFLX
56/100 NONE
JPM
56/100 NONE
GLD
51/100 NONE
XOM
44/100 NONE
MU
37/100 NONE
AVGO
32/100 NONE
QQQ
28/100 NONE
GOOGL
25/100 NONE
SMCI
23/100 NONE
BA
23/100 NONE
AAPL
21/100 NONE
DIA
20/100 NONE
AMZN
19/100 NONE
UBER
19/100 NONE
IWM
17/100 NONE
NVDA
15/100 NONE
SPY
11/100 NONE
META
10/100 NONE
HOOD
too new TOO NEW
PLTR
too new TOO NEW
The rules
Entrywhen close crosses above BBANDS upper band of close over 20 bars AND close is above SMA of close over 200 bars
Exitwhen a signal fires (close crosses below BBANDS middle band of close over 20 bars)
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 a very large profit of over 1,200%, but the ride was extremely lumpy and painful. The worst moment was a staggering 62.64% drawdown that lasted over two years, from early 2021 to mid-2023, which would have been a brutal test of patience. With only 31 trades and a win rate of 32%, the result is driven by a few big winners that made up for many losing trades. The entry timing shows a strong edge, beating 92% of random entries, meaning the specific moment you get in is a key part of the success. The edge was also consistent, showing up in three out of four test periods, so it was not just a lucky streak.

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Backtested results, not live trading returns. Fees and slippage included. Not investment advice.